Denver Metro Real Estate Market Update: Early 2025

Denver Metro Real Estate Market Update: Early 2025

by with No Comment Boots on the GroundHome Buyer/Seller TipsTop Posts

A Market in Transition: Increased Inventory and Fluctuating Demand

The Denver metro area’s real estate scene is always a hot topic, and the first few months of 2025 have been no exception! Let’s dive into some interesting trends from the Denver Metro Association of Realtors® (DMAR) reports for January and February 2025.

More Homes on the Market

Good news for buyers: we’ve seen a significant jump in the number of homes for sale compared to this time last year. In January, active listings were up almost 58% overall, with detached homes up 51% and attached homes up a whopping 73%! [DMAR Market Trends – February] This trend continued in February, with listings up 55% overall. [DMAR Market Trends – March]

New Listings Surge, Then Moderate

New listings also saw a big increase in January, up 135% from December 2024 and 32% year-over-year. [DMAR Market Trends – February] Things calmed down a bit in February, but new listings were still up 14% compared to the previous year. [DMAR Market Trends – March]

Sales Activity: A Mixed Bag

Pending sales (homes under contract) were up in both January and February compared to the previous month, but the year-over-year picture was mixed. [DMAR Market Trends – February] Closed sales were down significantly in February compared to the previous year, suggesting that the increased inventory might be giving buyers a bit more time to make decisions. [DMAR Market Trends – March]

Prices: Moderate Increases

The median close price for residential properties in February was $599,990, a 4.35% increase from both the previous month and the previous year. Average close prices followed a similar trend. [DMAR Market Trends – March]

Days on Market: Homes Taking Longer to Sell

Homes are taking a bit longer to sell compared to last year. In January, the median days on market for residential properties were 45 days, a 29% increase from the previous year. [DMAR Market Trends – February] While this number decreased in February, it was still higher than the previous February. [DMAR Market Trends – March]

Segment-Specific Trends

The higher end of the market ($1 million and above) saw strong activity in February and the $500,000 to $749,999 range remains competitive, especially for detached homes. [DMAR Market Trends – March]

Realtor and Expert Insights

There’s been a lot of buzz about a potential shift towards a buyer’s market, especially with the increased inventory. [DMAR Market Trends – February] However, February’s activity suggests that the market is still somewhat balanced. [DMAR Market Trends – March]

Local and National News Impacting the Market

Several local and national factors are influencing the Denver market, including new legislation, economic trends, and even kitchen design trends! [DMAR Market Trends – March]

Mortgage Market Updates

Mortgage rates retreated in February, which is good news for affordability. However, mortgage purchase applications are at historic lows. [DMAR Market Trends – March]

Denver Metro Rental Market

The rental market is also seeing some interesting trends, with varying changes in rents and days on market depending on property type. [DMAR Market Trends – March]

A Dynamic Market

The Denver metro real estate market is constantly evolving, and early 2025 has been a dynamic period. Increased inventory, fluctuating demand, and changing interest rates all contribute to a market that requires close attention. Whether you’re a buyer, seller, or investor, staying informed about these trends is key to making smart real estate decisions.

Take Action!

The Denver real estate market is dynamic and ever-changing. Whether you’re looking to buy, sell, or invest, staying informed is key. Here’s what you can do:

  • Buyers: Get pre-approved for a mortgage and work with a trusted agent to find the perfect property.
  • Sellers: Prepare your home for sale and price it competitively.
  • Investors: Analyze market trends and identify opportunities.

Don’t wait! The spring buying season is here, and now is the time to make your move.

Contact me today for a free consultation. I’m here to help you navigate the Denver real estate market and achieve your goals. Rember:

If you own too much real estate, or not enough – I can fix that for you!

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Proposed Housing Legislation in Colorado: What Landlords Should Be Watching in 2025

by with No Comment Legislative UpdatesTop Posts

The 2025 legislative session is well underway in Colorado, and there’s no shortage of proposed bills aimed at addressing the state’s housing challenges. Some bills focus on tenant rights, others on the construction of affordable housing, and still others on the regulation of landlords. Here’s a look at some of the most noteworthy housing bills that have been proposed as of February 10th, 2025:

The Good

Reducing the Cost of Housing (SB25-131)

This bill would modify existing warranty of habitability laws and repeal provisions related to evictions of residential tenants. It would also require any provision of any energy code adopted by a county or municipality on or after January 1, 2026, to be cost-effective.

This is a valiant effort from Rep. Paul Lunden to undo the damage that bad policy has unleashed on the housing market in general, but especially when it pertains to landlord-tenant law. It has quite the uphill battle – but hopefully we’ll see at least some sensible provisions pass through this proposal. 

This is one I’ll be watching very closely – and will update with a full write-up when the dust has settled.   

Rent Increases (HB25-1092)

This bill would clarify that a rent increase in a new rental agreement is reasonable if the landlord increases rent in view of fair market rent, as evidenced by the rental amount of comparable properties.

As predicted the “No-Fault Eviction” law that was passed last year left it completely up to interpretation what constitutes a “reasonable” rent increase. 

Common sense told me that the only way this could be decided would be by a judge on a case-by-case basis. This has proven true and plenty of landlords are finding themselves defending rent increases in court as part of “No-Fault Eviction” cases when tenants refuse to agree to any amount of increased rent. 

With organizations like the Community Economic Defense Project (aka the Community Firm or CEDP) providing “free” (state funded) legal services to tenants – you can see why the author of that bill, Rep. Javier Mabrey (who also co-founded CEDP), and other supporters made it so ambiguous.

The Bad and The Ugly

Enforcement of Existing Landlord-Tenant Law (SB25-020)

This bill clarifies the authority of the Attorney General, counties, cities, and municipalities to enforce existing landlord-tenant laws. It also establishes a receivership mechanism for multifamily residential properties that violate applicable laws and regulations.

This one is pretty dense and another one I’ll be watching closely. 

No Pricing Coordination Between Landlords (HB25-1004)

This bill would prohibit landlords from using coordinators to facilitate agreements that reduce competition between landlords. It would also prohibit two or more landlords from engaging in consciously parallel pricing coordination.

This might sound innocent enough – until you realize that it could very well make it illegal for landlords to look up rent estimates on sites like Zillow or for property managers to use comps and provide opinions on what rents should be based on market data. 

As in…they want you to just guess what rents should be and set your rents that way. 

This is just a recycled version of HB24-1057 Prohibit Algorithmic Devices Used for Rent Setting that got defeated last year, but don’t let your guard down. Ultimately it’s just more ammo for tenant attorneys to fire at landlords in court proceedings… 

It’s still early in the legislative session, and these bills may change significantly before they are voted on. However, they provide a snapshot of the housing issues that are top-of-mind for Colorado lawmakers in 2025. Stay tuned for updates on these and other housing bills as the session progresses.

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Rising Home Insurance Costs in Colorado

Rising Home Insurance Costs in Colorado: What You Need to Know

by with 2 Comments Boots on the GroundHome Buyer/Seller TipsTop Posts

With home prices, mortgage rates and property taxes taking center stage in almost every conversation about housing affordability, one little factor seems to be flying under the radar: insurance costs.

For most homeowners, taxes and insurance get bundled up in escrow and added to the total monthly mortgage payment – so it’s easy to lose track of exactly what caused your payment to go up unless you pay close attention to that kind of thing.

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2024 Colorado Housing Legislation: A Summary for Landlords

by with 2 Comments Legislative UpdatesTop Posts

The 2024 Colorado Housing Legislation significantly impacts landlords and property managers. This blog post provides a summary of key changes, including restrictions on evictions, new requirements for maintenance, and modifications for tenants with disabilities. Landlords must stay informed and understand their rights and responsibilities under these new regulations.