The more things change, the more they stay the same.
In the case of Million Dollar Homes in Colorado, much is the same, even after the “shakeup” in the real estate market:
- Buyers are looking for opportunities to invest in homes of exceptional design and quality.
- Luxury properties still constitute a small-but-critical segment of the market.
- Location is as important as ever in Colorado million-plus properties.
- The financial wherewithal of the high-end buyer provides a strong negotiation platform.
- Timing is still everything, and the time could be “now” for many million dollar real estate sellers and buyers.
However, some things are different. Denver is now seen as one of the strongest real estate markets in the country. Colorado Springs is also very healthy in the million dollar home segment. Prices have recovered strongly and a buyer’s market has reversed to become a seller’s market in some places. Today’s million dollar properties are not quite the same as they were in the middle of the downturn. In some cases buyers are standing in the driveway feverishly discussing how much above list price they should offer. Are million dollar homes at a peak right now? High prices and high demand may keep some buyers away. They would say that they do not want to buy in a bubble, though no-one can say whether that’s what is happening right now. On the plus side, the fundamentals of the Front Range recovery do seem to check out: these are diversified economies with a wide range of business sectors all doing far better than 4 years ago.
Metro Denver Real Estate: Search results $1 million and up.
Metro Colorado Springs: Search results $1 million and up.
Million Dollar Recovery?
One thing is clear to everyone, whether they are a million dollar homeowner or not: Colorado’s economic recovery is due, at least in part, to the energy economy. Low oil prices have the potential to derail at least some of the recent growth. Nevertheless, energy still represents a relatively small piece of the story. Looking at the bigger picture, questionable Fed activity has injected hundreds of billions onto Wall Street. Mortgage rates are still low, some would even argue that they remain artificially low. Unemployment numbers are more manipulated than they have ever been. While we are in a “recovery,” especially when considering the factors above and more, just how durable of a recovery is this? The bottom line here is the age old question of waiting to buy until prices fall again. Good or bad idea? And to the contrary side, just like any recovering market, we all share a fear of “not acting” in the event that prices continue to run up and selection decreases over time. One more thing to consider. It has been my frequent observation that in a down market most people are far less willing to make a move than they said they would be, simply because the psychology of the marketplace is negative. They know the deals are amazing, they know they can probably realize an eventual gain while living in a nicer home, but are still rarely willing to leverage the market. This writer’s point is that, ideally we’d “time the market,” but the truth is that few actually can or do, at least consistently.
Million Dollar Deals?
Yes, back in the day, it did seem that there were plenty of “million dollar home deals.” In fact, it seemed that the deals were everywhere. Again, it is also pretty easy to remember that confidence was so low that most people simply sat on the sidelines and did absolutely nothing. Therefore, in that context, there was never really a Colorado properties gold rush. The market simply presented a reasonable opportunity for stability and moderate gain. In the end, evaluating the overall housing economy is as confusing as it ever was.
A stress-free Million Dollar Property Viewpoint
Many real estate agents are reporting significant interest in and sales of million dollar properties due to pent-up demand in Colorado’s high-end market. Nevertheless, caution and prudence are back to being another form of currency now spent alongside money these days. The phrase “smarter real estate investment” comes to mind. One point that must be called into consideration: real estate wise and for the most part, people are hurt in downturns only when they have to sell. If a buyer knows they have a stable source of long term income, they can stay in their newly acquired home and weather the softer market, when it inevitably comes. Then they will probably see values increase past where they were in the next recovery. It is generally the longer term view, and if a million dollar property buyer chooses to see the housing world from this perspective, the lion’s share of the worry evaporates.
Many forget that while cries of the “terrible economy” were at a fever-pitch, some individuals did honestly see increases in their wealth during the downturn. These real estate buyers were savvy, and were interested in making the right Colorado million dollar property investments. They recognized that when things depreciated to the point that a property could not have been duplicated for sometimes twice as much as the cost was to acquire; let’s just say that many people realized that buying was a no-brainer. On the other hand, selling into that low market was something owners did only if they had to. These days, selling into the current market could be seen as just as much of an advantage as buying was them. This point of study is exactly where I enter the picture. Selling or buying? These are completely different questions right now. And even though prices are up, purchase opportunities still exist for the trained eye. As a Realtor with nearly two decades in the business, I was here at the bottom and still am as we potentially approach the top. Let’s sit down and study both the value and opportunity of the million dollar plus home. The decision process on million dollar homes never has been simple, it has always required the proper mix of rational facts (data) and emotional awareness (market.) Contact me to get started today.