market reports

Greater Denver Area Real Estate Market Report from February 2025

 
 

February brings a fresh start, a sense of clarity and focus heading into the spring market - buyers and sellers both gained momentum in February as the weather warmed and the sun appeared between weekend snowstorms; multiple offers have even returned for some listings, according to the Denver Metro Association of Realtors Market Trend Committee.

Seller activity jumped in February, increasing new listings month-over-month by 11.17 percent and up 13.81 percent year-over-year. An increase in inventory is typical this time of year as sellers enter the market after pulling back during the winter months.

New listings entering the market have been low over the past couple of years; homeowners are locked into 30-year fixed-rate mortgages in the three percent range or lower and have difficulty justifying a purchase that increases costs. As time has gone on, the conversation has evolved from when rates will decline to navigating a market with high interest rates for the foreseeable future. As time passes, our lives evolve and the low interest rate carries less weight when considering staying in a home that no longer meets our needs.

This early seller activity added inventory that outpaced buyer demand for both attached and detached properties. We had 4,828 new listings enter the market in February, and 3,516 listings went pending. The attached and detached markets both saw a month-over-month increase in the number of pending homes in February, 19.92 percent and 23.27 percent, respectively.

Pending homes also increased year-over-year, 2.48 percent for attached and 23.27 percent for detached homes. The increased activity for attached homes is a good sign after the market segment lagged in 2024 due to higher costs, such as increased HOA dues and insurance.

Fewer properties sold in February than last year, a decrease of 17.29 percent combined attached and detached, and total sales volume was also down 14.04 percent. The number of total homes sold is down year-to-date by 7.05 percent, and sales volume is down 3.27 percent. Home values are holding steady despite the balance of inventory and buyer demand. The median sale price for detached homes was up 2.63 percent and attached up 2.54 percent year-to-date.

Homes are selling in a shorter amount of time in the first part of the year compared to the 4th quarter of 2024. Median days in the MLS were 27 days for detached homes, down 37.21 percent month-over-month compared to 24 days in February 2024.

The median days in the MLS for attached homes were down 12.50 percent month-over-month; however, they were up from 21 days in February 2024 to 42 days.

The market as a whole for detached homes still represents a seller's market with 2.86 months of inventory, and the attached market is in the range of a balanced market with 4.76 MOl.

Inventory and mortgage interest rates are the two variables we continue to watch closely. Rates have fluctuated since the first of the year, but a general downward trend has been noticed. Still, rates above 6.5 percent mean it is a significant part of the calculation for buyers. Sellers will continue to participate in the market, adding options for buyers. With higher inventory, the basics always work; homes that are priced well, updated and well-maintained will appeal the most to buyers and sell quickly.

Homes in less desirable condition or priced too high will take longer to sell and require price reductions to hit their target mar-ket. The balance of seller participation and buyer demand will hinge on the economic environment and consumer confidence.

Learn more about the market from the Denver Metro Association of Realtors.

Keep reading for an analysis of properties over $1m by West + Main Homes Agent, Michelle Schwinghammer.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Greater Denver Area Real Estate Market Report from January 2025

 
 

Each January brings optimism and a renewed sense of purpose. We reflect on the previous year's accomplishments and set new goals for the year ahead. At the beginning of the month, many buyers found themselves in the same place as they were this time last year-seeking to purchase a new home and hopeful for friendlier market conditions, according to the Denver Metro Association of Realtors’ Market Trends Committee.

While market conditions have not changed much, sentiment has. This is our market environment, and it's likely here for the foreseeable future. In some ways, that brings stability-decisions become more complex when too many unknowns exist. We expect mortgage rates to remain steady, while price growth has stabilized. Inventory remains a key factor we are monitoring, as the balance between supply and demand is the most significant variable influencing the market right now.

The main highlight for January was the influx of new inventory. Both the attached and detached markets saw an increase of more than 100 percent from December and were up 38.50 and 29.11 percent, respectively, from January 2024. We typically see an increase in new listings from December to January as sellers reenter the market after a slower time during the holiday season. Active inventory at month's end was up 57.83 percent year-over-year, giving buyers more options as we enter the spring buying season. The median days in the MLS were up 28.57 percent year-over-year to 45 days-the highest median days in the MLS since 2015, a market unfamiliar to many in the Denver Metro area.

The most significant portion of this inventory is in the $500,000 to $749,999 price point for detached homes and under $500,000 for attached homes. These price ranges tend to attract buyers who rely more on mortgage purchases than cash, making them sensitive to interest rate fluctuations. Detached homes over $2 million have seven months of inventory, and attached homes priced at $1.5 to $1.99 million are seeing 19 months of inventory.

Market conditions are similar to those in January 2024. The higher mortgage rate environment lingers, and the optimism felt in January 2024 for multiple Federal Funds Rate reductions and lower mortgage rates did not materialize, presenting buyers with a rinse-and-repeat scenario. As a result, buyer activity was similar to January 2024, with 3,061 properties pending in January 2025, a slight decrease of 0.07 percent year-over-year, and 2,259 properties closed, an increase of 2.31 percent. The median sold price for attached properties increased 0.76 percent, and detached homes increased 2.08 percent. Total sales volume in January was up 7.43 percent, and the close-price-to-list-price ratio was up just 0.04 percent to 98.50 percent year-over-year.

The Denver Metro market's median sale price has increased from $317,000 in January 2016 to $575,000 in January 2025—an increase of 81.38 percent, averaging 9.04 percent per year. This serves as a reminder that real estate is a long-term investment.

Sellers in this market need to be serious and realistic about pricing. "Testing the market" by over-pricing is a risky proposition that leads to price reductions and a longer time on the market. Making your property stand out in a higher inventory environment takes preparation, flexibility and a willingness to work towards a common goal.

With increased inventory, less buyer competition and slow price growth, this is the moment buyers have been waiting for. Now is the time for buyers to start thinking about how to make homeownership work instead of looking for reasons it won't.

Learn more about the market from the Denver Metro Association of Realtors.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Greater Denver Area Real Estate Market Report from December 2024

 
 

2024 began with optimism; mortgage interest rates would stabilize and start a slow decline, inflation would subside — allowing the Federal Reserve to reduce the federal funds rate, and buyers and sellers would re-enter the market, according to the Denver Metro Association of Realtors’ Market Trends Committee.

In reality, we saw much of the same as in 2023.

Interest rates had a bumpy ride throughout the year. We finally saw the Federal Reserve ease the federal funds rate in the third and fourth quarters of the year. Mortgage rates responded temporarily with the first-rate drop but gained no benefit from the second and third reductions; this sends us into 2025 nearly where we began in 2024, with rates in the high six percent range.

Elevated interest rates have lasted longer than anticipated, and historically low rates of three percent are no longer realistic moving forward. Buyers have needed time to adjust to the affordability factors associated with the higher rates and increased home prices.

Total inventory in the market for 2024 increased 12.60 percent over 2023 but still lagged compared to 2020 through 2022. Most of this increase came from detached homes, while attached homes saw only a slight uptick. The number of detached homes sold increased 7.84 percent year-over-year. Attached homes had a decline in year-over-year sales of 15.51 percent and a 45.90 percent decrease from 2021. As we begin 2025, the market has more inventory than in recent years, giving buyers a wider variety of choices-although many of these homes have been sitting on the market for a while. The median days in MLS for active listings is 78 days, compared to 40 days for properties that sold in December. Buyers have an excellent opportunity to negotiate before the start of the spring market when buyer demand will increase.

This year, median home prices for attached and detached homes saw differing trajectories. Detached homes followed a typical annual price increase cycle in the spring months and tapered off into the 4th quarter, showing a slight upward trend and ending the year up 2.28 percent. Attached homes ended the year with a median sale price of $407,000, a decrease of 1.93 percent year-over-year. The attached market has had a unique set of circumstances to contend with. HOA dues have in - creased an average of about 37 percent in the Denver Metro Area since 2020; increases in insurance and repairs costs have strained HOA budgets. Condos are typically more affordable for buyers; however, the higher HOA cost adds one more challenge to the process.

We are over two years into an environment with mortgage rates over six percent with no meaningful change on the horizon.

Buyers and sellers have had to adjust to the market, and in tracking mortgage applications and pending contracts with slight drops in the mortgage rates, we know that buyers are watching and waiting, and buyer demand remains cautiously high.

Sellers, locked into the golden handcuffs of a historically low fixed-rate mortgage, are finding themselves unable or unwilling to postpone life changes, resulting in more inventory entering the market. While mortgage rates are not the only factor affecting market activity, they are the element that could bring about the most significant shift.

We're entering 2025 optimistic; the environment will continue to change with economic and political shifts. Realtors® are resilient and adaptable by nature, constantly evolving to meet the needs of our clients and finding opportunities in every market.

Learn more about the market from the Denver Metro Association of Realtors.

Read below for a deep dive into properties sold between $750,000 and $999,000 from West + Main Agent Michelle Schwinghammer.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Greater Denver Area Real Estate Market Report from November 2024

 
 

November brought a unique set of challenges, according to the Denver Metro Association of Realtors’ Market Trends Committee.

The first two weeks included the release of the employment data report, a presidential election, the Federal Reserve meeting and the consumer price index report. Each of these events introduced market volatility. While many consumers may not track these data points as closely as we do, they can still feel the uncertainty and fluctuations in consumer confidence.

With challenges come opportunities. Buyers in this current end-of-year market are finding gifts on a level rarely offered. Of the homes sold in November, about 50 percent had at least one price reduction before going under contract, and roughly 60 percent of the sellers provided concessions to buyers, many in the form of interest rate buydowns or repair credits.

November also saw a month-over-month decline of 16.54 percent in properties that closed or went pending, which declined by 10.54 percent. This is not surprising given the month's complexity and the increase in mortgage rates, which returned to the seven percent range.

Heading into the holiday season, we have seen a decrease in the number of new listings entering the market, which is typical this time of year. A decrease of 40.38 percent for attached homes and 41.90 percent for detached month-over-month allowed buyers to absorb some of the inventory, resulting in a 14.90 percent decrease in the active listings at month's end compared to October. Although inventory declined month-over-month, November saw an increase of 57.08 percent in attached homes and 32.01 percent in detached homes year-over-year. This presents opportunities for buyers to take advantage of higher inventory and reduced competition during the winter months.

Although inventory remains higher than in 2023, the median sale price for detached homes increased by 1.90 percent compared to November 2023. Attached homes saw a slight decline of 1.20 percent over the same period.

Through November 2024, 54,006 new listings entered the market, an increase of 12.84 percent from 2023. However, the total number of new listings still lags compared to recent years; through November 2020, 66,947 new listings had entered the market. The total number of sold properties in 2024 reached 39,153, a slight 0.31 percent from 2023 but a significant 32.83 percent drop compared to year-to-date 2020.

By the end of November, active inventory totaled 9,310 properties, with 3,022 properties closing during the month. These figures closely resemble November 2013, when 9,352 properties were on the market and 3,661 properties closed. Looking back, many buyers would describe 2013 as a favorable market, even though it came with its own challenges, such as a 7.4 percent unemployment rate and the lingering effects of the Great Recession.

While today's market challenges differ, opportunities remain for those who seek them. Whether buying or selling, every client faces unique variables, and it's our role as advisors to help them uncover the opportunities in each market and maintain perspective.

Learn more about the market from the Denver Metro Association of Realtors.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Greater Denver Area Real Estate Market Report from October 2024

 
 

The October market data showcases a tale of two markets. according to the Denver Metro Association of Realtors’ Market Trends Committee.

In the first half of the month, buyers were lured back into the market by a brief break in interest rates. Leading up to the highly anticipated Fed rate cut, mortgage rates hit a 19-month low in September at 6.1 percent bolstering sales into October. How-ever, with stronger-than-expected economic data throughout October, rates continued their upward climb, crossing the seven percent threshold by the end of the month. The swift rise in rates created a "pause" effect, amplifying the anticipated election-related paralysis among buyers in the latter half of the month. As such, the following data reflects a more optimistic picture of where the market currently stands.

Closed home sales rose 2.35 percent to 3,443, likely due to the dip in rates within the month of Septem-ber, as homes that went into pending status the prior month closed in October. Sales volume followed with a 7.4 percent increase while pending sales rose slightly by 1.07 percent. This uptick in activity brought months of inventory down from 3.6 to 3.18 months market-wide; however, median days in MLS continued to climb from 25 to 26 days.

Active listings decreased slightly by 1.57 percent due to the increase in pending and closed sales, as buyers absorbed some of the standing inventory. However, active listings are still 46.22 percent higher compared to last year, highlighting that there are simply more options, and it is taking longer to sell a home today. Reflecting on election-related hesitation, new listings decreased by 7.16 percent as sellers delay listing until after the election cycle.

Once election results are finalized, buyers and sellers are likely to refocus on the real estate market. Reflecting on historical data from the past three election cycles, DMAR Market Trends Committee member Michelle Schwinghammer noted, "In the 11-county Denver metro area over the last three election cy-cles, we've seen more month-to-month home price volatility leading up to an election, followed by increased price stability and a return to traditional seasonal patterns post-election. Once results are in, buyers and sellers tend to shift back to business as usual."

Anecdotally, many Committee members reported an increase in sellers preparing to sell their homes in the new year. If the Federal Reserve does lower rates this month and again in December, we may be set on a path for a strong 2025 as conditions normalize and home prices stabilize post-election.

Learn more about the market from the Denver Metro Association of Realtors.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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