As people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this category. In a recent article, they point out that a luxury home isn’t only defined by its price. Location is also an important factor. It could be a condo at a desirable location, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available.
Based on this, many would say that all property in Summit County, Colorado could be defined as Luxury Properties since we are in a very desirable location with luxury activities such as skiing, golfing, and sailing, and have very popular destinations such as Breckenridge, Frisco, Keystone, & Copper Mountain. However, as Realtors in Summit County, we tend view luxury properties as anything over $2,000,000. And this number continues to rise as our prices continue to rise.
Demand for luxury properties continues to rise in Summit County. In May of 2020, there were 75 properties over $2,000,000 that sold in Summit County in the previous 12 months, by May of 2021 that number jumped to 215 and most recently in May of 2022, 283 properties over $2,000,000 sold in the previous 12 months. We currently only have 106 properties active in the Summit County MLS that are priced at $2M and over with only 79 of those priced between $2M - $5M.
If you own a luxury home, it could be a great time to list your house today while demand is so high. But first, let’s understand where the demand is coming from.
What’s Driving the Heightened Buyer Demand for High-End Homes?
The same report says more people have reached a certain net-worth threshold, and that’s contributing to the increased interest in luxury housing:
“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%.
This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”
Call us today to get a full understanding of the value of your property and see if now is the right time for you to sell.