DMAR Real Estate Market Trends Report | JAN. '25
January’s standout trend 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. The Denver Metro typically sees 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 the market enters 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.
This increase in inventory is most concentrated 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.
Overall, 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.
“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,” commented Amanda Snitker, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “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 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 and also a good time to jump into the market.
Commented Snitker, “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.”
Our monthly report also includes statistics and analyses in its supplemental markets that include properties sold for $1 million or greater, properties sold between $750,000 and $999,999 and properties sold between $500,000 and $749,999.
Activity in the $1+ million market showed that sellers wasted little time getting to market, with new listings up 227.17 percent over last month and 45.41 percent over last January. Buyers, however, were more cautious, with pending sales rising modestly by 35.06 percent month-over-month and 11.15 percent year-over-year.
The seasonal slowdown in listed homes, typical during the holidays, impacts the number of closed homes early in the new year. Closed transactions were down 32.10 percent from December. Fewer active buyers during the same window meant homes were on the market longer, causing median days in MLS to increase to 55 days from 44 last month.
“These trends tend to reverse course as activity picks up after the Super Bowl, though new listings may continue to outpace buyer interest in the short term,” commented Nick DiPasquale, DMAR Market Trends Committee member and Metro Denver Realtor®. “A growing imbalance in this direction leaves selective buyers with more options and greater bargaining power. Savvy sellers need to seek ways to stand out in a crowded field.”
Though a smaller sample size, attached homes over $1 million are no less immune to the challenges in the attached market caused by HOA fees, insurance premiums and taxes. Attached home sales started the year lagging behind the pace set at the outset of 2024, down 43.36 percent in sales volume. Detached homes over $1 million, for comparison, experienced a 32.97 percent increase in sales volume over the same time.
Highlights from closed transactions in January include the highest-priced attached home at 1133 14th St. #3020 in Downtown Denver, which sold for $3.9 million, and the highest detached sale at 556 S. Elizabeth St. in Denver’s Belcaro neighborhood, which sold for $15 million.
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