Insights On The Colorado Luxury Market


White house with a pool


After 3 years of skyrocketing prices, the real estate market is finally projected to crash in 2023. However, even with 63% of sellers dropping prices on markets like Austin, properties cost at least $171,000 more than in December 2019. Luxury properties in many markets are selling under similar conditions and aren't great investments.

Even with price drops, Colorado's luxury properties have a $298,131 higher median list price than in December 2022. The luxury market is unlikely to crash due to low inventory, lack of new construction, an influx of new buyers with high purchasing power, and no emergence of foreclosed properties. However, equestrian homes in Parker have kept a consistent price and are excellent lots in terms of cost and value.

The Colorado luxury market is unlikely to face a crash anytime soon, and I'll explain why here. Also, I'll shed light on why equestrian properties may be your best and only option for high-value properties.


A Deep Dive Into Colorado's Real Estate

Colorado is one of many real estate markets where properties have shot up in price between 2019-2022. However, it's a market where prices have gone up by 45.6% in December 2022 from January 2019, even with prices dropping from June 2022. 32.1% of properties are still selling over the list price, and an average of 5.5% of buyers are still increasing prices.

Median list prices for most cities in Colorado have gone over $600,000, and new listings have increased even further. Take a look at these cities' median list prices.

  • Lake George has a median list price of $619,000, and the new median list price has increased to $665,000.
  • Woodland Park has an even higher median list price of $635,000, and the new median list price is $899,000.
  • Parker's median list price is $702,500, and the new median list price is $749,945.
  • Jefferson's median list price is $642,000, and the new median list price is a slow climbing $647,900.

Colorado's luxury market is keeping pace with this data. In markets like Woodland Park, the median list price for luxury homes in December 2019 was $810,408, and it reached $1,500,000 in December 2022. Even with 2023's predicted market crash, Colorado's real estate market will continue to rise.


The Causes For Skyrocketing Price

There are 4 primary causes for the continuing price rise in Colorado.

  • Low inventory.
  • No new construction.
  • Numerous powerful buyers.
  • No foreclosed properties.


Low Inventory

Low inventory raises demand, which raises the price. Most cities in Colorado have less than 100 properties in inventory. Take a look at these 4 cities.

  • Lake George only has 7 listings.
  • Woodland Park has 41 listings.
  • Parker has 234 listings.
  • Jefferson has 13 listings.


No New Construction

Since the 2007's housing market crash, builders in Colorado haven't been willing to build new homes. Even with the rise in demand from 2019, many have chosen to build new houses sparsely to keep the prices artificially high.


Numerous Powerful Buyers

Colorado's high-value properties have attracted buyers with high purchase power. Millennials and Hispanics have reached their prime purchasing power. In 2020, over 700,000 Hispanics bought homes, while over 45% of the buyers were Millennials.


No Foreclosed Properties

Foreclosed properties are an established way to buy housing for cheap. However, Colorado has had the lowest number of foreclosures in the last few years. In 2020, there were 1,397 foreclosure listings and 307 sales. But in 2021 Q1, only 226 foreclosures were listed, and 103 were sold.

These 4 factors have a stranglehold over Colorado's market conditions, and you won't see any positive changes for sellers soon.


Large brick house, cloudy, grey sky


Why Parker, And Why Equestrian Homes

On the surface, Parker is the worst offender in terms of skyrocketing prices. Many listings are already passing the new median list price of $899,000. But this is aggregated data, and it's hiding the luxury properties' prices.

Parker's luxury properties had a median list price of $1,200,000 in December 2019. And it has come back to that exact number in December 2022. Also, over 54.73% of sellers have lowered prices in this bracket.

The median price in Parker nets you properties with 5,363 square feet of homes and 1-2.5 acres sized lots. And equestrian homes have a higher demand in Parker than any other housing. You may have to contend with other buyers if you find an equestrian home you like.

If you aim for these luxury homes, you'll easily avoid every issue chocking the Colorado real estate market right now. And if you want to make changes, the renovation cost for luxury homes is $411.09 per square foot, which is perfectly manageable.


Colorado's luxury market will remain unfavorable for buyers for a long time to come. Still, if you want to score a great deal in Colorado, luxury properties will provide the most value. Investigate the market data as minutely as you can, and find nice properties that lack potential buyers.