2024 Year-End Review and 2025 Housing Market Outlook
2024 Housing Market Recap
Steve Danyliw reflects on a year that echoed many of the challenges of 2023, shaped by elevated mortgage rates and evolving buyer and seller behaviors. While Denver outperformed national trends in transaction volume, the market faced slower price growth and longer selling times.
Key highlights:
- Inventory Surge: Denver Metro closed 2024 with a 12.6% increase in new listings compared to 2023, with detached homes driving much of this growth.
- Transaction Volume: Despite high mortgage rates, Denver saw a modest 0.9% increase in closed transactions, outperforming the national forecasted decline of 5-10%.
- Price Performance: The median closed price rose 2.08% to $590,000, while attached single-family homes saw a slight price decline, reflecting shifting demand dynamics.
- Longer Selling Times: Homes averaged 38 days on the market, up significantly from just 14 days in 2021, signaling a more competitive environment for sellers.
“While 2024 shared similarities with 2023, it outperformed in inventory growth and transaction volume,” Danyliw notes. “However, persistent headwinds like elevated rates and longer selling times tempered overall market performance.”
2025 Market Forecast: Modest Gains Amid Stabilization
Looking ahead, both Danyliw and Evangelou forecast a year of stabilization for the Denver housing market, with opportunities emerging for buyers and sellers despite affordability challenges.
Steve Danyliw’s 2025 Outlook
- Modest Growth in Sales: Detached home sales are projected to grow 4-6%, while attached sales may decline by 7-10%, impacted by rising HOA fees.
- Price Stability: Median closed prices are expected to rise by 0-3%, with inventory levels forecasted to grow slightly, offering more options for buyers.
- Mortgage Rates: Rates are anticipated to range from 6.25-7%, with builders continuing to use mortgage buydowns to attract buyers.
“Affordability will remain a hurdle for buyers,” Danyliw predicts. “Sellers will need to adopt strategic approaches to compete in a market defined by incremental changes rather than dramatic shifts.”
Nadia Evangelou’s National and Denver Perspectives
Evangelou sees 2025 as a year of recovery and opportunity, supported by stabilizing mortgage rates and robust economic drivers.
- Improved Affordability: While rates above 6% may limit significant affordability gains, stabilization near 6% will encourage more buyers to reenter the market.
- Job Growth and Migration: Denver’s job market, which has outpaced the national average, and its net migration gains position it as a resilient housing market.
- Inventory and New Construction: Increased inventory and a rise in new construction will provide buyers with more choices, moderating price growth to an estimated 2%.
“Denver’s combination of strong job growth, positive migration trends and favorable demographics make it a robust and desirable housing market,” Evangelou explains. “As the lock-in effect eases and inventory improves, both buyers and sellers will find opportunities to succeed.”
