Despite the ongoing challenges of mortgage rates exceeding 6%, the metro Denver housing market continues showing signs of resilience, with increased buyer demand and rising home values.
According to the December Denver Metro Association of Realtors monthly report, active listings fell by 26% from the previous month. Still, they were up 39% over last year, indicating a shift as sellers facing life changes enter the market.
The number of active listings remains historically low. The average for December 1985-2023 was 11,966, while 6,888 properties were available last month. The record high was 24,603 listings in 2007, while the record low was 1,477 in 2021.
Pending sales dropped 15.6% from November’s 2,913 to December’s 2,459 but remained 8% higher than last year’s 2,268 listings.
Meanwhile, the median sale price remained stable at $580,000 from November to December; it increased by 5.5% from December 2023 to $550,000.
“Buyers and sellers have had to adjust to the market, and in tracking mortgage applications and pending contracts with slight drops in the mortgage rates, we know that buyers are watching and waiting, and buyer demand remains cautiously high,” said Amanda Snitker, chair of the DMAR Market Trends Committee.
“Sellers, locked into the golden handcuffs of a historically low fixed-rate mortgage, are finding themselves unable or unwilling to postpone life changes, resulting in more inventory entering the market.”
Annual sales volume improves
This year’s sales volume of $29.7 billion climbed 2% over 2023’s $28.6 billion.
“The housing market in 2024 mirrored many of the challenges seen in 2023, with elevated mortgage rates continuing to shape buyer and seller behavior,” said Steve Danyliw, a past chair of the market trends committee.
“One of the standout developments of 2024 was the significant increase in inventory, driven by an influx of new listings. The year closed with 55,839 new listings, up 12.6% from 2023’s total 49,489.”
In 2023, only 0.25% of closed transactions involved distressed properties, including 33 short sales. This percentage increased slightly to 0.35%, with 65 short sales in 2024. These figures are significantly lower than those in 2012 when 3,576 short sales were recorded.
2025 housing predictions
Looking ahead, Danyliw anticipates similar challenges this year to 2024.
Buyers will continue to face affordability constraints, while sellers must differentiate their properties in a competitive market.
Mortgage rates will continue to exert a dominant influence.
“While buyers may benefit from increased inventory and stronger negotiating leverage, affordability remains a significant hurdle, with little expectation of meaningful rate reductions,” he said.
“For sellers, heightened competition will dampen price growth, necessitating strategic approaches to marketing and positioning their homes.”
Andrew Abrams, a member of the market trends committee, said increased inventory gives sellers more bargaining power, but he anticipates 2025 sales will be similar to 2024’s.
“Denver metro has a resilient economy that supports high-income earners,” he said. “While 2024 proved to be a stronger market than 2023, I expect 2025 to hold that same pace.”
Michelle Schwinghammer urges sellers to bring their A-game.
She said sellers who skimp on promotion or make their homes unappealing through overpricing, access limits, or refusing to negotiate will hear a clear ‘no thanks’ from a qualified, motivated buyer pool eager to explore more options than in years past.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.