It’s no surprise to many people that Denver continues to grow in popularity. By 2030, it’s expected that more than 3.6 million people will call Denver home. This has translated to an incredibly hot real estate market, and the buying frenzy 2020 and 2021 brought to Washington Park luxury homes was like throwing gasoline on the fire. Buyers could not get enough of the luxury homes Denver had to offer.
Now that we’re well into 2022 and reaching a new level of normal, the market is shifting. Many buyers looking at luxury Cherry Creek homes are wondering if waiting is better, and sellers are getting nervous if they don’t receive an offer within the first few days.
If you’re wondering what the future of Denver and Cherry Creek homes is, keep reading. Eddie Johnson will tell you everything you need to know about the Denver luxury market and what you can expect in the coming months.
What does “luxury” mean for Denver?
When it comes to real estate, the long-accepted price point for a luxury listing has been $1 million. Anything below, and it didn’t technically count as a luxury, especially when it came to Cherry Creek homes or Denver in general. Over that $1 million mark, it was luxury. This is not just Denver, but most metro areas in the United States, like Austin and Tampa. There are only a few notable exceptions, like the Bay area and New York City proper.
Denver has long been one of the metro areas that were not the exception. That is until Washington Park luxury homes exploded. The whole Denver market has been incredibly hot in the past five to 10 years, and what people need out of a home has changed a lot. People value space, outdoor living, and a home office. Previously, these were not a priority.
When you think about the luxury real estate market for Denver in general, it’s important to not only temper your expectations but understand what luxury means for this specific area. It’s not the same as it was even five years ago.
Inventory is slowing but will start to return
The Denver Metro Association of Realtors released a study in June 2022 that highlights a lot of important data about the Denver area in general, and especially Washington Park luxury homes or luxury Cherry Creek homes, so let’s dive in.
The biggest thing of note is that inventory is starting to return to the luxury market, but it’s not fast enough for most buyers. From the prior month, there are nearly 14% more active listings. Closed homes are also up over 3%. The average days spent on MLS, or the Multiple Listing Service that lists all Denver and Cherry Creek homes for sale, was up 12%. It was down, however, from last year at this time.
What all of this information tells us is that the luxury market is still strong and steady, but inventory is beginning to normalize a bit. Homes are still selling very quickly, but just not at the rapid-fire pace we saw at the end of 2020 and during 2021.
This is all expected and completely normalized.
No major dips coming
This can be good or bad news, depending on if you are looking at Cherry Creek homes to call your own or if you want to sell your current piece of real estate. Across some areas of the United States, the real estate market is taking a hit. With rising mortgage rates and inflation continuing to impact families, many first time buyers are not in the same position they were this time last year.
That said, the Denver metro area is not expected to be hit too hard by all of this. None of the numbers we are seeing from the Denver Metro report on sales indicate any sort of major dip. Unlike in 2008 when prices were artificially inflated due to predatory lending practices, the price of Washington Park luxury homes are due to real demand. There is no burst if there is no bubble, just a natural rise due to demand.
If you were looking to sell your current home, this should be good news for you. You didn’t “miss out” on the hot seller’s market Denver saw in 2021, and prices are projected to hold steady for quite a while. However, if you were looking to snag a deal on Cherry Creek homes, you will be waiting quite a while.
New companies
The luxury market is just going to get more competitive in the next few years, with several major companies moving to Denver. FileInvite, Finder, Melio, and AGC Biologics are all expected to open locations in Denver within the year, according to information released by Metro Denver. All of these positions, and many more, are projected to pay a healthy, competitive salary. These folks will need to live somewhere.
Washington Park luxury homes are an obvious choice for many, and it’s going to mean even more competition. This is another reason that prices are not projected to dip drastically in the Metro Denver area. With so much growth and so many new jobs, the need for luxury Denver and Cherry Creek homes will always be there.
Ready to jump into the Denver real estate market?
If you’re considering buying your first Denver luxury home, or selling your current property, reach out to Eddie Johnson today. Eddie fell in love with Denver as a kid and is now an active member of his community and one of the best agents in Colorado. It doesn’t matter if you’re in love with Washington Park luxury homes or you need to list among Cherry Creek homes quickly; Eddie can help guide you through the process every step of the way and assure you come out on top.
