Denver Metro Area Luxury Home Sales Dip in May,Coldwell Banker Residential Brokerage Reports

DENVER, Colo. - June 23, 2009 - Sales of million-dollar homes in the Denver metro area declined in May from the previous month and median prices dipped 3.5 percent, according to a new report by Coldwell Banker Residential Brokerage, Colorado's leading provider of real estate services.

A total of 36 luxury properties changed hands in May, down from 49 in April and 82 in May 2008. The median sale price of $1.28 million was down from April's median price of $1.33 and off 2.5 percent from the $1.31 million median price of a year ago.

"The lower end of the housing market continues to be the strongest segment of the market in the Denver metro area as it is in most areas," said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. "The upper end of the market is slowly showing signs of stabilizing, but we will have to work through inventory in lower price levels before the upper end can return to normalcy. We're making progress, but we have a ways to go."

Mygatt said recent incentives for first-time home buyers are starting to make a dent in the excess inventory, but he said much more needs to be done to stimulate the housing market. He supports a series of recommendations made by the Business Roundtable, an association of chief executive officers of leading U.S. corporations. Among other proposals, the organization recommended that policymakers:

• Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;
• Expand the current First-Time Homebuyer Tax Credit incentive from an $8,000 cap to $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
• Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
• Make permanent the current temporary conforming loan limits; and
• Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

"Targeted, demand-side incentives - such as the ones Business Roundtable is recommending - are a critical next step for a housing recovery," Mygatt said. "Not only would these measures provide a shot in the arm for the housing market, they would create additional jobs and boost the economy as a whole."

Some key findings from this month's Coldwell Banker Residential Brokerage luxury report:

• The most expensive sale in the Denver metro area in May was a six-bedroom, seven-bath 7,786-square-foot home in Boulder that sold for $2.9 million;
• Denver boasted the most million-dollar sales with 10, followed by Boulder with nine;
• It took an average of 142 days to sell a million-dollar home in the region compared to 146 days in April and 132 days a year ago;
• Homes sold for an average of 87 percent of their asking price, up from 85 last month, but down from 92 percent a year ago;

The Denver Metro Area Luxury Home Report is produced by Coldwell Banker Residential Brokerage, a specialist in high-end real estate sales. Through its internationally renowned Coldwell Banker Previews® program, the company is recognized around the world for its expertise in the luxury housing market. The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million.

About Coldwell Banker Residential Brokerage

Coldwell Banker Residential Brokerage, a leading residential real estate brokerage company in Colorado, operates 14 offices with more than 1,180 sales associates serving the communities of the Denver area. Through its internationally renowned Coldwell Banker Previews® program, the company is widely recognized for its expertise in the luxury housing market. Coldwell Banker Residential Brokerage, online at www.ColoradoHomes.com, is part of NRT LLC, the nation's largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy's company-owned real estate brokerage offices. For more information please visit www.ColoradoHomes.com or call 888.322.9378.

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