Denver is quickly becoming a luxury housing market as the number of homes sold at $1 million or more has doubled over the last two years, according to data from the Denver Association of Realtors’ (DMAR) latest market report.
“As we head into 2022, the Luxury Market will continue to stay strong,” Libby Levinson, a Denver realtor, said in a statement. “As home prices continue to soar coupled with increased conforming loan limits, I expect to see similar numbers next December.”
According to the report, the single-unit segment of the luxury market closed more than 4,600 sales last year, a more than 100% increase when compared to 2019.
Similarly, the multiunit segment ended the year with a 140% increase in sales with 630 luxury properties exchanging hands last year.
The luxury segment also continues to outperform the broader market in terms of active inventory, the data also shows. By the end of 2021, the number of luxury homes on the market had climbed by 5% while the broader market saw its inventory drop by nearly 42% when compared to 2020.
Denver’s luxury market also got a boost from increasing conforming loan limits, which are set by the Federal Housing Finance Agency and determine what kind of loan a homebuyer will need to take out.
Denver’s conforming loan limit increased to $684,250 last year, which is $37,050 higher than the national average. This means that many homebuyers can purchase a home up to $750,000 with 10% down without being required to take out a jumbo loan, which do not carry home insurance requirements and are considered riskier for private lenders.
Levison added that the loss of homes in Boulder County’s Marshall fire “puts further pressure on an already tight real estate market,” since many of the approximately 1,000 destroyed homes fell within the luxury category.
This article was originally posted on Number of luxury homes sold in Denver doubled over last two years