Here’s a number that luxury home owners should keep in mind when trying to sell their more than $1 million residence: $150,000.

That was roughly the average price reduction in the million-dollar-plus category in the month of October, according to the latest report from the Denver Metro Association of Realtors.

Metro Denver’s housing market continues to see price reductions and longer days on market across the board as sellers and real estate agents work to find that perfect listing price.

Of the 4,654 single-family and condominium residences sold in October — a number that was down 6.4% from last month — about 40% had to make a price reduction to close the deal.

And while that seller had to take less money, they also had to wait longer for their home to sell: When a price drop happened, homes, on average, stayed on the market for 59 days. Homes that were priced “just right,” says Jill Schafer, chair of DMAR’s market trends committee, were only on the market for 14 days.

The average home sale price in the month of October was $486,390 — $5,870 more than the average sale in September. Year to date across DMAR’s 11-county region, the average sold price is $487,235, which is up 2.52% from a year ago.

The average sale price of a single-family home through October this year is $536,962, which is up 2.14% from a year ago. The average condo sale price is $364,449 — up 3.73% from a year ago.

Schafer said pricing issues aren’t the only thing contributing to the increase in days on market, which stands at 30 days year-to-date, up six days from a year ago, is home condition — something that isn’t measured by a metric.

“… I can tell you today’s buyers want a home that is move-in ready,” she said. “Many homes [in October] had obvious deferred maintenance, clutter everywhere and dirt and dust that appeared to have accumulated over a number of years The buyers popped in and out of those home in a hurry wanting to continue looking.”

Article By Andrew Dodson  – Reporter, Denver Business Journal