It was another banner year for the Cherry Creek North residential neighborhood (generally considered from 1st to 6th Avenues, University to Colorado Boulevards).
Cherry Creek North: 1st Avenue to 86h Avenue, University Blvd to CO. Blvd:
Average Home Sold: 3 Bedrooms/3 Bathrooms
Average Size: 2,009 SF Above Grade / 2,642 SF Total
Average Days on Market: 62
Average Price: $987,303
As a neighborhood resident since 1989 I am in awe at the numbers. As a broker I and others were shocked when Paul Kobey developed a row of luxury attached homes called the Georgetown on the 400 block of Columbine Street. At the time of development the asking price of $400,000 was considered the top of the market and unattainable. In today’s market, the lowest priced listing in the neighborhood is in the $450K range, a small tudor abutting Colorado Boulevard.
Will the success last? If I were truly clairvoyant I would not be composing this blog and would be residing on
the French side of St. Martin, however I would be somewhat concerned. While the average sales price is just shy of $1M; of concern is the number of days on the market. While conventional wisdom does advise the higher the price the longer on the market, coupled with increased inventory available and higher interest rates the pinnacle may have been reached.
Of concern from a brokers perspective is the development of the luxury rentals and condos being developed in the neighborhood. I am just not sure where the demand for such inventory is coming from. While I have represented mountain residents and others desiring a pied-a-terre in Cherry Creek, this market is truly finite. It is not uncommon to look up at the buildings and see few if any lights on.
More positive is the lack of spec houses i.e. those built on speculation. With standard 50′ x 125′ lots pushing the $1M mark, development on those lots is now more commonly bespoke by a buyer versus speculation. While there are a few spec developments, still more common south of 1st Avenue where land is generally less costly.
If I were in the market as a potential seller at present I would place on the market yet price attractively to cut through the clutter on the market and stand out as a value proposition. As a buyer, unless planning to stay a minimum 3-5 years I would seriously consider advising to rent or hold off a few months and keep an eye on inventory and price reductions. Granted I am a conservative broker yet I have also been through three business cycles during my years as a broker and while I am not concerned about a potential crash of value; between forecast increases of mortgage interest rates, the equities market moving sideways the economic issues in China, many pundits are cautious. As one long time client who is a voracious buyer commented to me “I am now a seller”.