Highlights:
- Premiere Homes are priced from $500,000 to $749,999.
- Premiere home sales up 52.7% in first quarter.
- Dollar volume rises 50.7% in first quarter.
Buyers are hungry for homes priced from $500,000 to $749,999 in the Denver metro area, according to a new study.
This 5-bedroom, 5-bathroom house, on the market for just under $750,000, is a Premiere Property.
The consumer appetite for homes in this price band of the move-up market was so strong that sales soared 65.3 percent in March from March 2012, according to a report by independent broker Gary Bauer.
The report shows that buyers closed on 281 single-family detached homes last month priced between $500,000 and $749,999, compared with 170 in March 2012.
Bauer, who based his report on Metrolist data, calls these homes Premiere properties.
Home sales in that price range, which often reflect the second or third home purchases for many consumers moving up the housing ladder, rose 69.3 percent from February, when 166 Premiere properties sold.
?Once again, this is another area in the price ranges where the number of homes being sold are well into? double digits, both on a month-over-month basis and year-to-date,? Bauer said.
Sales volume increases were similar to the jump in sales.
In March, buyers paid $165.24 million for Premiere homes, compared with $100.8 million in March 2012, almost a 64 percent increase.
The average price of a home sold, however, actually dropped slightly to $588,044 from $592,823.
?At first, I was surprised, because I thought we would see a small increase,? Bauer said.
?But the more I thought about it, I realized that as the recession moves through time and is further behind us, certain price ranges will initially see some slight price decreases, before they start showing normal 3 percent to 5 percent increases,? Bauer said.
?Premiere properties are probably in their second year of recovery.?
However, despite the 0.81 percent dip in the average sold price, the average price per square foot rose 6.45 percent in March to $231 from $217. The average price per finished square foot rose 6 percent to $176 from $166.
In the first quarter, buyers purchased 620 Premiere single-family homes, a 52.7 percent increase from the 406 in the first three months of 2012 and a 78.3 percent jump from the first quarter of 2011.
The dollar volume of Premiere properties rose 50.4 percent to $364.7 million from just under $242 million in the first quarter of 2012. Dollar volume was up 78.3 percent from the first three months of 2011, when it stood at $204.6 million.
Year-to-date, condo sales in the Premiere price range are up 32 percent.
There were 37 condo sales in that price range in the first quarter, compared with 28 through March of 2012.
The year-to-date dollar volume rose 36 percent to $22.9 million, compared with $16.9 million in the first quarter of 2012.
In March, there were 15 Premiere condo sales, the same as in March 2012.
The dollar volume rose 7.7 percent to $9.45 million in March from $8.8 million in March 2012.
The average price of a Premiere condo sold last month was $630,193, compared with $585,281 in March 2012.
Have a story idea or real estate tip? Contact John Rebchook at? JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.
Related Posts:>Source: http://insiderealestatenews.com/2013/04/premiere-home-sales-jump-69/
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