Denver Parade of Homes to Shift to Luxury Theme in 2009

Every spring, Home Builders Associations in metropolitan areas across America host an event that has come to be called “The Parade of Homes.” The Parade of Homes usually takes place in a hot subdivision and features 12 to 20 new homes with all the latest and most luxurious features designed by local architects and sponsored by various home builders.

The Parade of Homes is a rite of spring in the United States, with most communities looking forward to the event as entertainment as well as a way to flush potential buyers out of their winter nesting  behavior. Tickets usually run between $10 and $20, and lots of local merchants and design specialists are represented. People go just to window shop, and it’s usually a good time even if you aren’t the least bit interested in buying or building a house.

This year, the Home Builders Association of Denver, Colorado has decided for the first time ever to switch the focus of  its Parade of Homes from newly built suburban models in a single location to already existing luxury homes scattered throughout the greater Denver metropolitan area. The event will be renamed “The Denver Luxury Home Tour” and will feature pre-existing homes selected by a panel of Denver builders that are valued at $1 million or more.

This home was featured in the 2008 Denver Parade of Homes. This year the tour will be recast a luxury tour.

“Despite the housing slump, our association is committed to promoting our homebuilding industry, and our members felt that this approach would better serve the public as well as homebuilders,” Clarence Hughes, HBA board member and tour chairman, said in a statement. Hughes also is co-owner of Parker-based custom homebuilding firm Renaissance Homes.

Toll Brothers, one of the most prominent American builders of luxury homes has watched profits fall in recent years. but in January saw a slight and somewhat unexpected improvement. Toll Brothers maintains a website that lists luxury homes for sale in Denver, and it’s fun to browse through them, even if you don’t have a spare million or two to spend just now.

In most economic downturns, luxury goods and luxury real estate are both fairly stable bets, but the scope and depth of the current downturn has been such that even high-end properties have suffered, and new luxury homes have been especially hard hit. Some very preliminary signs indicate this may be beginning to change, with popular metropolitan areas in the western states (like Denver) being especially worth watching.

Trends in real estate in the U.S. are hard to call this year, but if you are able to focus on the luxury market, this might be a good time to get in. Look for rapidly growing metropolitan areas near resort and high-end tourism locales. Colorado, Montana, North and South Dakota, and even parts of Arizona and Utah are good places to search for luxury properties that might be on the cusp of appreciation.

As with most real estate in the U.S. right now, trends are very location-specific, with houses in the same city five miles apart sometimes having radically different futures. That’s why working with a licensed, experienced real estate agent who is familiar with the luxury market, foreign buyers, and local trends is crucial to making the right choice.

As Spring approaches, it appears that specific luxury markets in the U.S. might be the first to show signs of renewed life. Look for rapidly expanding major metropolitan areas and rural locations near major tourism centers in the west. States like Colorado, Utah, Arizona, and North and South Dakota all are well-placed to exploit changes in the energy industry as well, and are worth watching for signs of renewal.