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!
Be Sure to Subscribe if You Enjoyed This Post
Download the Denver Evolution App for Regular Updates
