Skyrocketing number of Denver-area homes fetch more than $2M

No home in the Berkeley neighborhood ever fetched $2 million or more, until this year, continuing a trend that’s seen Denver metro home prices skyrocket.

The record-setting home: A modern farmhouse with a self-sufficient ADU over the garage that includes a kitchen, living room, dining area, bedroom, bath and laundry.

Denver metro’s luxury real estate market saw exponential growth in the past decade, with 876 properties sold for over $2 million in 2022 — an increase of nearly 700 percent since 2013.

In that same period, the average price for all homes in the metro increased by 121 percent from $306,00 to $678,000. The percentage change in the price per square foot was almost the same.

BusinessDen previously reported that $1 million isn’t quite the definition of luxury it once was.

During the pandemic, skyrocketing prices caused homes under $400,000 to plummet while the number of homes sold for more than $2 million steadily increased.

More than half of all luxury purchases in 2022 occurred from March through July, according to MLS data from REColorado for Denver, Boulder, Jefferson, Adams, Arapahoe and Douglas counties.

Prices played a significant role in how quickly homes sold; houses selling for $2 million to $3 million stayed on the market for about eight days, while those priced at $6 million or higher stayed active for up to 80 days.

Delroy Gill with LIV Sotheby’s International Realty said he pulled data on luxury purchases in Denver for the past year and was shocked by how many transactions had local buyers.

“Denver’s a quiet, hidden money hub,” he says. “People tend to be understated, not flashy but that doesn’t mean the money isn’t in the bank, it sure is.”

Delroy said Denver buyers typically buy luxury homes as their primary or secondary residence and consider them an investment.

This story was reported by our partner BusinessDen.