We entered 2024 with optimism—a hope for stabilizing mortgage rates, cooling inflation, and a reinvigorated housing market. While some progress was made, much of the year mirrored 2023. Mortgage rates remained volatile, reacting only briefly to Federal Reserve adjustments. As we begin 2025, rates sit in the high 6% range—unchanged from a year ago—challenging both buyers and sellers to adapt to this new era of homeownership.
The days of 3% rates are behind us, but this presents a unique opportunity: buyers can negotiate more favorable terms, and sellers with a long-term view still have a competitive edge.
For Buyers: Opportunity in Patience
Inventory grew 12.6% in 2024, giving buyers more choices than in recent years, especially in detached homes. However, many of these homes are lingering on the market—median days active is now 78, compared to 40 for sold properties in December. This is your chance to take your time, identify properties with potential, and negotiate strategically.
Pro Tip: Focus on homes that have been on the market for over 30 days. Sellers in this position may be more willing to offer concessions, like covering closing costs or funding a rate buy-down. And don’t sleep on seasonal timing—early in the year, you’ll face less competition before spring demand picks up.
For Sellers: Emphasize Value
Buyers have adjusted to higher interest rates, but affordability remains top of mind. Homes that shine—either through impeccable presentation or competitive pricing—are the ones moving quickly. Detached homes ended 2024 with a modest 2.28% price increase, while attached homes saw a slight decline of 1.93%, partly due to rising HOA dues. If you’reselling in 2025, it’s crucial to highlight what makes your property special—whether it’s a fully renovated kitchen, outdoor living space, or walkability to key amenities.
Pro Tip: Price strategically and invest in high-quality staging or minor updates to create a “move-in-ready” appeal. Partnering with an agent who can market your home with a design-forward lens ensures your listing captures attention in a crowded market.
Market Trends to Watch in 2025
- Buyer Flexibility: With more inventory on the market, buyers have room to explore options. Sellers should prepare for negotiations—whether it’s price, inspection repairs, or offering incentives like HOA fee credits.
- Attached Homes Challenge: While condos remain an entry point for many buyers, rising HOA dues are adding financial pressure. Sellers in this category should address these concerns upfront by emphasizing overall affordability and community benefits.
- Spring Surge: Historically, Denver’s spring market brings an influx of buyers. Sellers considering listing should aim for early preparation to capture heightened demand.
Looking Ahead
Despite higher rates, buyer demand remains cautiously high, with many watching for opportunities to jump back in. Meanwhile, life moves forward for sellers, and those holding onto historically low-rate mortgages are starting to make moves as circumstances evolve.
Entering 2025, we’re leaning into optimism. Real estate isn’t just about transactions; it’s about finding possibilities in every market condition. At milehimodern, we’re here to guide buyers and sellers alike with elevated expertise and a focus on lifestyle-driven living. Together, we’ll make 2025 a year of bold decisions and beautiful spaces!
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