January 2025 Market Update and Review

Buyers and sellers are realizing the reality of the market. Interest rates are not expected to change drastically, so buyers needing loans understand their purchasing power in this market and are adjusting their expectations. Price growth in our market has stabilized. Buyers can take a deep breath without 10-20% price increases.

Sellers are bringing their homes to market earlier in the year. January saw a large influx of inventory compared to December and last January. Active inventory was up nearly 60% over last January. Because of this, sellers need to be prepared for their homes to sit a little longer, with a median days-on-market of 45 days. This is the highest median days-on-market since 2015, nearly a decade! Pricing strategy, preparation, and patience are key right now.

Most of the increase in inventory is in the $500-$750K range for detached homes and under $500K for attached homes.

Single-family homes over $2M have 7 months of inventory available, and attached homes prices at $1.5-$2M have 19 months of inventory available. As a reminder, months of inventory means if nothing else changes and no new homes come on the market, it would take 7 and 19 months to sell everything. Those price points are certainly in a buyer’s market.

Denver’s median sale price increased over 80% from $317K in January 2016 to $575K in January 2025, roughly 9% per year. Real estate remains a long term investment.