Each January brings a fresh start—a chance to reflect on the past year, set new goals, and look ahead with optimism. For many buyers, the start of 2025 feels a lot like 2024: still searching for the right home and hoping for friendlier market conditions. While the market itself hasn’t shifted much, the overall sentiment has. This is the environment we’re in, and it’s likely to stick around for a while. But with that comes a level of stability—when there are fewer unknowns, decisions become a little clearer.
We expect mortgage rates to hold steady, price growth to remain stable, and inventory to be the biggest factor shaping the market. Right now, the balance of supply and demand is what’s driving everything.
The biggest headline for January? New inventory hit the market in a big way. Both attached and detached homes saw over a 100% increase in listings from December, and year-over-year, inventory was up 38.5% for attached homes and 29.1% for detached homes. This seasonal surge is normal—sellers tend to re-enter the market after the holidays—but the bigger picture is that active inventory is up nearly 58% compared to last year, giving buyers more options as we move into the spring market.
One stat that really stands out: the median days on the market hit 45 days, the highest we’ve seen since 2015. That’s a big shift from the ultra-fast-paced market many Denver buyers and sellers are used to.
Where is the inventory?
- Detached homes: The majority of new listings fall in the $500K–$750K range
- Attached homes: Most inventory is priced under $500K
- Luxury market: Detached homes over $2M have seven months of inventory, while attached homes in the $1.5M–$1.99M range have a staggering 19 months of inventory
These price points matter because buyers in the lower and mid-price ranges tend to rely more on financing, making them more sensitive to interest rate changes.
Market conditions = déjà vu.
January 2025 is looking a lot like January 2024. The higher mortgage rate environment is still in play, and the expected rate cuts from last year didn’t quite pan out the way many had hoped. That led to a “rinse-and-repeat” market, where buyer activity mirrored last year’s numbers:
- 3,061 properties went under contract (down just 0.07% YOY)
- 2,259 properties closed (up 2.31% YOY)
- Median sold price: +0.76% for attached homes, +2.08% for detached homes
- Total sales volume: Up 7.43%
- Close-price-to-list-price ratio: Slight increase to 98.5%
And if you ever need a reminder that real estate is a long-term game: Denver’s median sale price has jumped from $317K in 2016 to $575K in 2025—an 81.38% increase over nine years, averaging 9.04% per year.
What does this mean for buyers and sellers?
For sellers, this market requires realistic pricing and strong preparation. Overpricing is risky—testing the market with a high price often leads to price cuts and longer days on the market. With more inventory out there, making your home stand out is key.
For buyers, this is the moment many have been waiting for—more options, less competition, and slow price growth. Instead of looking for reasons why homeownership won’t work, now is the time to figure out how to make it happen.
As we move into the spring market, strategy matters more than ever. Whether you’re buying, selling, or just keeping an eye on things, let’s connect and chat about how to make the market work for you.
