Navigating the Denver Metro Real Estate Market: Trends and Insights
Whether you are a buyer, seller, or investor, understanding market trends can help you make informed decisions in this dynamic market.
Market Overview
The Denver Metro real estate market has seen significant changes over the past year. January 2025 marked a notable increase in inventory, with both attached and detached markets experiencing an increase in listings from December. This influx of new listings provides buyers with more options as we enter the spring buying season.
Inventory and Pricing Trends
Active inventory at the end of January was up 57.83% year-over-year, offering a wider selection for potential buyers. The median days in the MLS increased to 45 days, the highest since 2015. This trend is particularly evident in the $500,000 to $749,999 price range for detached homes and under $500,000 for attached homes. These first time home buyer price points attract buyers who are sensitive to interest rate fluctuations, making them a key focus in the current market.
Luxury Real Estate Insights
For those interested in luxury real estate, the market remains robust. Detached homes priced over $2 million have seven months of inventory, while attached homes in the $1.5 to $1.99 million range are seeing 19 months of inventory. This abundance of high-end properties provides ample opportunities for buyers seeking luxury homes in the Denver Metro area.
Market Stability and Buyer Activity
Despite the higher mortgage rate environment, buyer activity remains steady. January 2025 saw 3,061 properties pending, a slight decrease of 0.07% year-over-year, and 2,259 properties closed, an increase of 2.31%. The median sold price for attached properties increased by 0.76%, and detached homes saw a 2.08% rise. These figures indicate a stable market with consistent demand.
Long-Term Investment Potential
The Denver Metro market's median sale price has increased from $317,000 in January 2016 to $575,000 in January 2025, reflecting an 81.38% increase over nine years. This growth underscores the long-term investment potential of real estate in this region. Buyers and investors can expect continued appreciation, making now an opportune time to enter the market.
Conclusion
While market conditions have not changed much, sentiment has. Buyers are adapting to the current environment, and stability in mortgage rates and price growth is expected. Inventory remains a critical factor, influencing the balance between supply and demand. The Denver Metro real estate market offers a wealth of opportunities for buyers, sellers, and investors. With increased inventory, stable pricing, and a strong luxury segment, this market is poised for continued growth. As your dedicated real estate agent with LIV Sotheby’s International Realty, I am here to provide you with expert guidance and access to exclusive listings. Whether you are looking to buy, sell, or invest, I am committed to helping you achieve your real estate goals.