The first four months of 2018 saw a significant increase in the number of homes in Boulder and Broomfield Counties that sold for over $2M and over $3M. Within those counties, the city of Boulder continues to drive the local market with average home price hovering around $1M.
The over $2M segment of the market has jumped 223 percent since 2015, with a 133 percent gain last year alone. At this point in 2017, 14.4 percent of homes were priced at $2M or more. Today, 24.7 percent of homes are in that category.
Demand is being driven by an influx of “tech titan” employers such as Google and Zayo, bringing high-paying jobs to the region. The Front Range is also attracting a variety of promising new ventures that are tapping into a highly talented and educated workforce. Transplants from historically strong markets on the two coasts and shifting demographics are elevating Boulder to what Luxury Daily terms a new “second-tier power market.” According to Luxury Portfolio International®, a “new aristocracy” of 25 to 49-year-old buyers with solid careers, families, and some inherited wealth are making up the majority of buyers in the over $1M segment.
Demand for luxury homes is being met with constrained supply as buyers and homeowners over the age of 50 choose to stay in their homes. Many are reluctant to leave an area that is widely regarded as one of the country’s most desirable places to live, work, play, and retire. Whether or not this appreciating market is a “new normal” for Boulder remains to be seen as we head into the hottest selling months of the year.