With a third-quarter year-over-year price growth of 34.7 percent, one Colorado city led the nation in luxury home price growth.

Longmont saw the biggest national growth, with luxury homes there (the top 5 percent of homes) selling for an average of $1.55 million in the third quarter, up more than 34 percent from a year earlier, according to research by Redfin.

Also seeing explosive growth in luxury home sales was Littleton that saw year-over-year price growth of 15.1 percent, which was the ninth-highest percentage growth in the country. Luxury homes there sold for an average of $1.11 million in the latest quarter.

"In general, the Denver and Boulder metro areas have seen rapidly escalating prices across all price bands, due to rising homebuyer interest and low inventory. The number of homes for sale in the Denver metro in September was down 11 percent year over year. This tight inventory is pushing up prices from starter homes through luxury homes across the region," Redfin said in a statement.

Read more at the Denver Business Journal: http://bit.ly/2yNt1IS