Mark Hunke

Denver Real Estate Specialist

The Mark Hunke Team
Your Denver Real Estate Experts
Call Us Today
303-619-7793
  • Home
  • Luxury Communities
    • Castle Pines Village
    • Chenango in Centennial, Colorado
    • Cherry Creek
    • Cherry Hills Village Real Estate
    • Denver’s Country Clubs
    • Denver Executive Homes
    • Denver Highlands
    • Greenwood Village
    • Highlands Ranch Real Estate
    • Observatory Park
    • Park Hill Colorado
    • Polo Grounds Colorado
    • The Preserve Colorado
    • The Pinery, Parker, the Club at Pradera
    • Red Rocks Country Club, Willow Springs, Willow Brook
    • South Aurora, Colorado Real Estate
    • Washington Park
  • Luxury Home Search
    • Luxury Home Search Form
    • Featured Properties
    • Map Search – Denver Luxury Homes
    • Find My Dream Home
    • Denver Relocation Guide
    • Get Luxury Property Alerts
  • Buyers
    • Buying a Home
    • Step 1 – Choose a Realtor
    • Step 2 – Get a Loan!
    • Step 3 – Research the Neighborhood
    • Step 4 – Submitting the Offer
    • Step 5 – Closing The Deal & Moving In
  • Sellers
    • Sell Your Home
    • Selecting a Professional Denver Luxury REALTOR®
    • Are You Ready to Sell a Luxury Property in the Denver Area?
    • Determining the Listing Price
    • Real Estate – Selling Your Home FAQ
    • What’s the Best Listing Price For Your House?
  • Finance
  • About
    • About Mark Hunke
    • Denver Real Estate Blog
    • Letters of Recommendation
    • Realtors – Join The K Company
  • Contact

The Luxury Home Market is Still Heating Up

November 19, 2015 By Mark Hunke

According to numerous articles and statistics, the luxury home market is definitely heating up. Many cities around the world are experiencing exponential growth, and the number of people who are buying and selling executive homes in the Denver area and elsewhere is on the rise.

The Laws of Supply and Demand

The price of things like milk and gasoline rise and fall due to supply and demand. The less of something there is, and the more people who want that something, the more it costs. The same principle drives the real estate market, too. There are a limited few executive homes for sale in any given market, so naturally, this drives up the price. Finally, when multiple buyers are interested in the same property, it is possible for that price to climb even higher as they buyers try to outbid each other. Although the market tends to favor sellers at this point, buyers are not slowing down.

new houseDenver’s Success as a City

Another reason why the luxury real estate market in Denver is heating up has to do with the city itself. A representative from Coldwell Banker Residential Brokerage spoke with Investopedia.com, claiming that the sales of luxury homes – meaning those valued at $500,000 or more – climbed 44% between 2012 and 2013, and that trend continues even today. This is fueled by Denver’s outstanding job market. When compared to other US cities, Denver has unusually low unemployment rates and plenty of high-paying jobs. This drives the executive real estate market.

Buyers from Other Countries

Believe it or not, buyers from other countries make up a good percentage of the United States’ luxury home sales. According to the NAR, or National Association of Realtors, international transactions represented 4% of the entire monetary value of real estate purchases and 6% of all home sales in 2013. Although the most popular states for international buyers are Texas, Florida, California, and Arizona, Denver is seeing an increase in the number of international buyers due to its booming local economy.

The Availability of the Internet

The Profile of Home Buyers and Sellers reports that nine out of 10 buyers utilize the internet when searching for and ultimately buying their executive homes. In the 2013 report, they stated that 43% of all consumers who purchased luxury homes around the country first saw their homes online. This is true even with the innate disadvantages associated with online shopping for luxury homes. Sellers are often very wealthy or celebrities, so in order to protect their privacy, they do not list through traditional engines or even MLS. Nonetheless, many real estate agents maintain databases of these homes and regularly offer them to their clients via the web.

The luxury home market has been heating up for years, even despite the financial crisis of 2008 that still has many people reeling. In Denver, especially, where the local economy is booming, unemployment is down, and high-paying jobs abound, the executive home market is heating up. It’s a great time for buyers and sellers alike.

Filed Under: Uncategorized

Recent Posts

  • New Home Sales Slow Despite Lower Prices
  • Higher Credit Scores are Coming: Are You One of the Lucky Ones?
  • The Housing Market Slump Still Exists in Some Locations
  • Fewer New Builds – Why the Sudden Slowdown?
  • Do Walk-In Closets Improve Home Values?

Categories

  • Centennial Colorado
  • Cherry Hills
  • Denver Area
  • Denver Real Estate
  • Energy Efficient Properties
  • Financing
  • Greenwood Village
  • Highlands Ranch
  • Home Buyers
  • Home Rentals
  • Home Sellers
  • Investment Properties
  • Job Market
  • Luxury Homes
  • Parker Colorado
  • Real Estate
  • Uncategorized

Search for Homes

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
5-star logo
Equal Housing
Blue Fire Group    Real Estate Websites
© 2023 Copyright
LAC
Buying Buddy    Powered By Buying Buddy ®