As we hit the five-year mark since the onset of COVID-19, it’s impossible not to look back on how this period shaped our world—especially the real estate market in Colorado. The “before,” “during,” and “after” of the pandemic left lasting marks, but we’ve also seen how resilience, shifting priorities, and new ways of living transformed the way we approach home buying and selling.
During the peak of the pandemic, homeownership wasn’t just about a place to live—it became a safe haven. Families were suddenly faced with the need for space to work, learn, and live in isolation, often within the confines of their homes. Home offices, yards for kids and pets, and gym spaces became essentials. There was an urgency to move—whether to accommodate remote work, create room for growing families, or simply escape a living situation that no longer fit the new reality.
As the demand for homes skyrocketed, the real estate market was fueled by historically low interest rates, pushing prices up. But beyond the numbers, the experience of homebuying during this time was unlike anything we’ve ever seen. Buyers were often forced to close from their cars due to social distancing rules, limited in-person showings, and the overall need for caution. Open houses were a rare commodity, and showings were limited to just a few per week as families continued to live in their homes. Lines around the block to see a new listing were not unusual—buyers were ready to act fast and with urgency, often writing offers sight unseen to beat the competition.
This surge in demand peaked in April 2022, when the median sale price in the Denver Metro reached an all-time high of $616,500—an astonishing 38.5% increase from March 2020. But as we’ve moved through the “after,” the market has begun to balance out. Today, in March 2025, the median sale price in the Denver Metro is $599,000, reflecting a 3.9% drop from the peak. While this marks a shift, it’s still a strong price, with five years of solid annual appreciation at 6.92%, which aligns closely with historical averages.
The main factor driving the shift? Rising interest rates. In 2020, the average rate for a 30-year fixed mortgage was about 3%, but by late 2022, it jumped to around 7%, where it has largely stayed. This spike in borrowing costs has naturally slowed buyer activity, despite a rise in available homes.
Comparing the current market to pre-pandemic times paints a clear picture. In the first quarter of 2020, there were only 6,666 new listings in the Denver Metro area. Fast forward to the first quarter of 2025, and that number has increased to 15,529. Even with more homes for sale, the number of properties sold has decreased significantly. In Q1 2020, 12,065 homes were sold, but in Q1 2025, that number dropped to 8,697—a 27.9% decline. This slow down highlights how different the market is now compared to the hyper-competitive, pandemic-driven days.
For today’s buyers, this shift offers a mix of challenges and opportunities. While mortgage rates remain high, the increase in inventory has given buyers more options and more negotiating power. With fewer buyers rushing to make decisions, there’s time to carefully consider homes without feeling pressured into making a quick offer.
Sellers, on the other hand, find themselves in a different position than during the 2020-2022 market. Buyers are no longer in a frantic rush to secure a home. They are more selective and looking for homes that are well-maintained, move-in ready, and priced competitively for today’s market. If sellers want to create urgency, they must do so by presenting their home in its best light and pricing it attractively.
Looking back, it’s remarkable to see how much the market has transformed in such a short time. From the chaos of bidding wars and lines of buyers around the block, to a more balanced, thoughtful approach to home buying and selling, it’s clear that the market is shifting—and finding its equilibrium. Whether you're considering buying or selling, the landscape today is different, but it’s still full of opportunities.
Source: Denver Metro Association of Realtors Stats
