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If you watch the weekly statistics that we produce and post on social media, a number that might be jumping off the screen at you is the average price.
Specifically, it is the percentage increase in average price versus last year that is striking.
We are commonly asked ‘how could average prices increase 20% to 30% in one year?’
It is important to note prices haven’t appreciated up to 30%, it’s only the average price that has increased by that amount.
A key reason why average prices have increased by such a significant amount is that there are many more luxury properties selling this year versus last year.
Sales of properties priced over $1,000,000 have seen a substantial increase compared to 2020.
Look at these numbers which show the year over year increase in closed transactions for real estate priced over $1 million:
- Larimer County = 159%
- Weld County = 247%
- Metro Denver = 137%
So, transactions of luxury properties have much more than doubled compared to 2020 which is pulling up the average sales price in a significant way.
