Month-to-Month Market Stats: Dec 2024-Jan 2025

The Rundown

Thoughts about the market in 2025

The days of the frenzied Denver metro real estate market are gone. Higher interest rates have settled in and buyers seem to be reluctantly accepting that and making offers. They are tired of waiting for interest rates to drop significantly while watching prices continue to increase. The outlook for 2025 is a slight dip in appreciation over the next few months and then a more stable increase in home values  (in the 2%-4% range) as the year rolls on. influenced by various economic factors.

The big unknown is unemployment and inflation – the two main drivers of interest rate change. With the new administration’s goal of significantly reducing the Federal budget, reducing the federal workforce will trickle down to affect unemployment in the states. High unemployment rates typically lead to decreased demand for housing, as fewer individuals can afford home purchases. In response, central banks may lower interest rates to stimulate economic activity, making borrowing more affordable.

The proposed tariffs could elevate inflation and erode purchasing power, prompting lenders to increase mortgage interest rates. Buyers will go back to the sidelines.

The Denver housing market is looking at modest growth in 2025. However, economic indicators such as unemployment and inflation will play key roles in affecting mortgage interest rates and overall market.

About the stats…

An “Attached” home includes condo, townhome, or multi-family (typically one unit of  a duplex, triplex or fourplex). The stats above include all types combined. Prices vary for each. For example, the median sold price for condos in the metro area in January was $415,000. For a townhome, it was $450,000 and for a multi-family, the median price was $553,570. Here’s a breakdown of the key differences:

Condo - You own the inside only. The exterior, land, and common areas are collectively owned and maintained by the HOA, paid for with all owners’ dues. You share walls with neighbors, and may have someone above or below you.

Townhome - You own the inside, outside and the land beneath your unit. Common areas are collectively owned and maintained by the HOA, paid for with all owners’ dues. You share walls with neighbors, but have no one above or below you.

Multi-Family - These are buildings with multiple connected housing units (duplexes, triplexes, four plexes or row homes). Properties can be listed as multi-family and a sub-type of condo or townhome. There may or may not be an HOA.