Greater Denver Area Real Estate Market Report from March 2025

 
 

March 2025 is notable, marking five years from the beginning impacts of COVID-19 in Colorado. It's a historical experience in which we know the "before", the "during" and the "after." according to the Denver Metro Association of Realtors Market Trend Committee.

A jumble of lessons in resilience, priorities and what is considered essential. Buried in all of this was a trigger activating a sudden need for change, whether it was a need for home offices and a place to school children or a yard for the kids and dogs who could no longer access school and park playgrounds, a place with a home gym or a detached home without public access points and elevators - this sudden urge was almost primal, a need to access a space that felt safe. This trigger, the combination of sudden demand and historically low interest rates, began a surge in the real estate industry that would last 24 months, culminating in a peak median sale price in the Denver Metro of $616,500 in April of 2022, a 38.5 percent increase from March 2020.

Five years later, we see the "after" - a market balancing out as normalcy returns, tempered by high interest rates. This March's median sale price in the Denver Metro was $599,000, down 3.9 percent from the peak. The balancing of the market has occurred with lower buyer demand, higher levels of inventory and stagnation in pricing. Primary residential homes are a longer-term investment; looking at the overall five-year performance of the market yields a 6.92 percent annual appreciation, which is in line with long-term averages.

Higher interest rates and affordability challenges have had the most significant impact on the market shift. In 2020, the average interest rate for a 30-year fixed mortgage was around 3 percent and remained in that range until the spring of 2022, when rates surged to about seven percent by year-end —where they have largely remained. This sharp increase in borrowing costs has slowed buyer activity, even as inventory has grown.

The first quarter of 2020 is our pre-pandemic benchmark, reflecting market conditions before COVID - driven demand accelerated activity. In the first quarter of this year, 15,529 new listings have entered the market, compared to just 6,666 in the first quarter of 2020. The 2020 surge in buyer demand began amid already-low supply. As inventory has increased, prices have stagnated. In the first quarter of 2020, 12,065 properties were sold; in the first quarter of this year, only 8,697 properties were sold - a 27.9 percent decline -highlighting that the market remains less active than it was before the pandemic.

The good news for buyers in this current market is that the pricing rebalance has allowed the drastic value jump to even out. Mortgage rates remain impactful on affordability; however, the increase in supply has provided more options to choose from and increased negotiating options with sellers.

Sellers are in a different position than in 2020-2022; buyers are pickier and looking for homes that have been well-maintained, require minimal updating and, of course, are priced competitively for the current market conditions. Buyers don't have the same level of urgency as during the pandemic years; sellers need to create that urgency by presenting a beautiful home at an attractive price.

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.

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Just Listed: Updated Brick Duplex in Wheat Ridge with Great Investment Potential!

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Prime investment opportunity in coveted Wheat Ridge!

This updated single level brick duplex offers modern amenities and strong income potential in a rapidly growing area. Located just 2 blocks from the Light Rail and minutes from I-70, Olde Town Arvada, and Golden. Each side features 3 beds, 2 baths (including primary en-suites), in-unit laundry, private fenced yards, and spacious garages — an oversized 2-car detached garage for 5085 and an insulated attached 2-car garage for 5075. Stylish updates include brand-new white oak LVP flooring, new stainless steel appliances, new Simonton windows, new roof with skylights, and refreshed low-maintenance landscaping. 5085 offers 1800 sq feet with two fireplaces, an evaporative cooler, and a large bonus room. 5075 offers around 1500 sq ft with central A/C, a sunroom with a wet bar, and a new smooth driveway. Separately metered for gas and electric with baseboard boiler heat and dedicated water heaters, this property provides a fantastic opportunity to generate rental income or occupy 1 side while leasing the other (hello househackers!) — both sides live like single-family homes with 1 shared wall. Projected total market rent is approximately $6K/month, and 5075 is currently leased through Feb 2026. Don’t miss your chance to invest in a thriving location!

Listed by Britt Guimond for West + Main Homes. Please contact Britt for current pricing + availability.

 
 
 

Have questions?
West + Main Homes
(720) 903-2912
hello@westandmainhomes.com

Presented by:
Britt Guimond

(970) 445-4741

britt@brittguimond.realtor

 
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Despite an average return of 29.6%, fewer investors were home flipping in 2024

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Home flipping by investors declined in 2024 as margins improved but remained below the levels seen during most of the past decade.

While an average return of 29.6% over a relatively short time span would seen tantalizing to investors in many asset classes, it was a long way from the 54.2% peak of 2016, and even as it improved on the averages of 2023 and 2022, the share of all home sales in the US that were flipped (7.6%) declined by almost 8% year-over-year and more than 32% from 2022.

The ROI on median-priced home flips nationwide has dropped 16 percentage points since 2020 and is off by 25 points since the highwater mark over the past decade.

The stats are from property analytics firm ATTOM, which revealed that the gross profit on a typical buy-renovate-and-resell project last year was $72K nationwide, up from just shy of $68K in 2023.

"The home-flipping industry saw investors shy away even more in 2024 amid the extended period of languishing profits. But even as activity waned, there was at least a glimmer of hope that returns were starting to turn around," said Rob Barber, CEO at ATTOM. "While home flippers still seemed to be having difficulty timing the market for big profits, their margins at least stopped going in the wrong direction."

Two thirds of US metropolitan statistical areas saw a reduction in home flipping last year with the biggest decreases in the South and West.

2025 outlook

With the first quarter of 2025 almost done, Barber says navigating the market won’t be easy for investors.

"This year poses significant uncertainty for investors, what with a short supply of homes for sale, declining numbers of low-priced foreclosure properties, mixed economic forecasts and elevated mortgage rates. So, they will have to do some very smart buying and quick renovating to keep the profit rebound going."

New data from the National Association of Realtors shows that home price growth is still accelerating.

Existing-home sales advanced 4.2% in February and the median existing-home sales price rose 3.8% year-over-year to $398,400, the 20th consecutive month of year-over-year price increases.

While price rises could make it harder for investors to enter the market and drive margins higher, they are certainly good news for existing homeowners, especially given a rise in the number of homes in negative equity reported at the end of last year.

"Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners," said NAR Chief Economist Lawrence Yun. "That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values."

Read more at InvestmentNews

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Paused Your Moving Plans? Here’s Why It Might Be Time To Hit Play Again

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Last year, 70% of buyers abandoned their home search – and maybe you were one of them. It makes sense. Inventory was low, prices were high, and mortgage rates were up and down like a rollercoaster. All of that made it really hard to find a home you loved – and could afford.

But guess what? The market is shifting.

So, if you paused your moving plans in 2024, it might be time to hit play again. Here’s why.

More Inventory Opens Up More Options

Even if you could make the numbers work, the lack of available homes in recent years probably made it hard to come by something that fit your needs. But inventory is rising, which means you have more options now.

According to Realtor.com, inventory has jumped 27.5% since this time last year.

So, if you were reluctant to list your house because you weren’t sure where you’d go if it sold, you have more choices than you did a year ago. That’s a big win.

Homes Are Staying on the Market Longer, Too

When the supply of homes for sale is low, they’re snatched up quickly because there just aren’t enough of them to go around. And a few years ago, that meant your house could sell overnight. While that’s not always a bad thing, if you’re planning a move and also need to find your next home, a slower pace isn’t the end of the world. In fact, it’s welcome relief.

Now that inventory has grown, homes are staying on the market longer, meaning you don’t have to feel as rushed in the process

The latest data shows the typical time homes spent on the market went up by about 8% this year – that’s higher than we’ve seen since 2020, but still a faster pace than before the market ramped up. And it’s about a week longer than last year. Talk about a sweet spot for movers. It may seem like just a few days, but it gives you more flexibility and time to be thoughtful about your decisions. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, notes:

“There are more homes for sale than in the last few years, which means the market pace is a bit more manageable–with longer days on market–and many sellers are more flexible . . . Though buyers face still-high housing costs, they may find a bit more give in the market, which could give them more time to make a decision, even in the busy spring and summer months.”

And if you’re thinking – but wait – doesn’t that mean it will be harder to sell my house? Don’t worry. With inventory still almost 23% below the pre-pandemic norm, well-priced homes are selling, especially as more buyers step back into the game this season.

Bottom Line

With growing inventory, sellers who want to upgrade, downsize, or relocate have more choices. Plus, with less pressure to rush into an offer, it could be a great time to revisit your home search if you put it on hold.

Read more at Keeping Current Matters

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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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What Homebuyers Can Learn From the 2008 Crash in 2025

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A now-viral post has been making the rounds on real estate X (formerly known as Twitter), showing a sign outside a construction site 45 minutes north of Tampa, FL. It reads: “NEW HOMES ZERO DOWN.”

“It’s beginning to look a lot like 2008,” the caption warns.

With builder incentives ramping up and inventory growing in select markets, comparisons to the 2008 housing crisis and financial collapse are surfacing again. But are today’s homebuyers facing the same risks?

"I think the key lesson from comparing 2008 to today's housing market is that context really matters," says Danielle Hale, chief economist at Realtor.com®. "While the low level of home sales might seem reminiscent of the mid-2000s, the driving factors are very different."

We spoke to six housing experts to share what they learned from the housing crash and how today’s buyers can make smarter, safer decisions in 2025.

Echoes of 2008—and where the similarities stop

In some fast-growing markets, like parts of Florida and Texas, today’s housing trends might feel eerily familiar: rising inventory, sluggish demand, and homebuilders scrambling to offer steep incentives.

Real estate analyst Nick Gerli, CEO of Reventure App and author of the X post, highlighted a development where 12 newly built homes are sitting on the market.

According to a builder’s agent on-site, the company was offering 0% down mortgages and even preparing to convert some homes to rent-to-own—moves that Gerli says echo the last housing downturn.

In another X thread, Gerli pointed out that national builder Lennar has offered incentives totaling 13% of its revenue on new home deliveries, the largest seen in over a decade.

While these tactics may feel reminiscent of 2008, the experts we spoke to weren’t so convinced.

For one, unlike the conditions that led to the last crash, today’s price growth is being driven primarily by real supply and demand, not speculative buying or reckless lending.

“Today’s supply-demand balance is completely different from 2008,” says Robert Dietz, senior vice president and chief economist of the National Association of Home Builders. “Today, we face a structural deficit of housing. ... In contrast [in 2008], we had too much supply and sources of phantom demand brought about by poor underwriting standards, which resulted in a steep drop for home prices.”

Lending practices have also changed. While borrowing standards in the mid-2000s were lax, most buyers today are highly qualified thanks to the regulations of the Dodd-Frank Act, and it’s much harder to borrow more than you can afford.

“I don’t really see a lot of parallels in the current market to that of 2008,” adds Mason Whitehead, a home loan specialist with Churchill Mortgage. “Yes, housing prices are up, but that’s based on supply and demand this time, rather than speculation and irresponsible lending.”

Most strikingly, though, 2025's greatest protection against collapse is the financial strength of homeowners.

"Economic stress among homeowners in 2008 prompted those in a precarious financial position who were underwater, or owed more than their home was worth, to leave their homes," says Hale.

But today is much different.

"Even if home prices were to fall by up to 20% overnight, there would still be more equity in today's homes as a share of value than was in the market before the decline in 2008," she explains. "This is not to say that all individuals are in the exact same position, and certainly there are some who would find job loss or other financial hardship challenging. But the total picture is such that, in aggregate, homeowners are in a much better position."

In short: Builder incentives may be grabbing headlines, but experts say they reflect regional cooling in overheated markets—not a repeat of the last national crisis.

What buyers should take from the 2008 playbook

Even if today’s housing market isn’t a repeat of 2008, that doesn’t mean the lessons from that time don’t still apply. In fact, experts agree that many of the same habits that got buyers into trouble back then—like stretching beyond their means or focusing too much on short-term gains—can still create risk today.

Lesson 1: Live within your means

“One of the biggest lessons people should have learned from the 2008 financial crises was to not overextend yourself,” says Whitehead. “Living within your means and understanding that whether or not you can afford something comes down to more than ‘Can I make the monthly payment?’ is very important.”

H. Jack Miller, president & CEO at Gelt Financial, echoes that advice: “Homebuyers should not overextend themselves even if they find someone to lend them the money,” he says. “Buy what you can comfortably afford—and even a little less so you can sleep at night if bad things happen.”

In short: Just because you can qualify for a larger mortgage doesn’t mean you should take it. Having a budget, and sticking to it, matters more than ever in a market where prices and costs can shift quickly.

Lesson 2: Build a buffer

It’s also important to prepare for the unexpected. Having a financial cushion can prevent short-term setbacks from snowballing into long-term problems.

“Set a goal of having three months of expenses in savings as a reserve or emergency fund,” Whitehead recommends. “Many people’s financial problems start with an unexpected expense or job loss, so they immediately have to use credit cards—and that becomes a slippery slope.”

Lesson 3: Choose the right loan product

Beyond your budget, it’s smart to think through the structure of your loan. While adjustable-rate mortgages (ARMs) may offer lower initial payments, they can become risky if rates continue to fluctuate.

“ARMs can seem attractive at times … but if rates spike, you are going to have to deal with that too,” says Adam Hamilton, CEO of REI Hub. “In times of uncertainty, fixed-rate mortgages can be the best choice because they allow your mortgage payments to remain predictable.”

Buying in 2025

Experts agree that the key to buying in 2025 isn’t about trying to time the market perfectly. It’s about knowing your financial limits, understanding the full cost of homeownership, and choosing a mortgage that works for you—not just today, but in the years to come.

“Creating a budget with a buffer for ‘just-in-case’ scenarios—like home insurance and taxes increasing— and worst-case scenarios—like a housing downturn—is of the utmost importance,” says Evan Luchaco, a home loan specialist with Churchill Mortgage. “It’s a comforting thought as a homebuyer to know that even if the worst-case scenario happens, you’re still going to be all right.”

Read more at Realtor.com

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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