Monthly Market Update for January

In 2025, The Denver Metro real estate market continued the stabilization trend that began in 2023. Affordability, total ownership costs, and mortgage rates remained the primary drivers of buyer decision making, while sellers adjusted expectations to align with changing conditions. Price reductions became more common, time on market increased, and concessions were frequently used to bridge affordability gaps. Overall, 2025 reflected a market settling into a more balanced environment, requiring both buyers and sellers to adjust their strategies.

The market was also shaped by economic forces beyond the real estate industry’s control. There were few Federal Reserve rate cuts due to inflation and tariff uncertainty which kept mortgage rates between 6–7%. Economic uncertainty weakened consumer confidence with new administration policies contributing to issues in the labor market and increased construction costs.

As a result, market performance in all major metrics remained relatively flat year-over-year in the Denver Metro market.

Looking ahead to 2026, the core conditions that have defined the market for the past three years: modest price appreciation, fairly consistent market activity and mortgage rates in the 6–7% range, show little signs of significant change. Buyers will benefit from creative financing approaches, including rate buydowns and loans structured to maximize purchasing power. Sellers must prioritize competitive pricing from the outset and invest in presentation and pre-listing preparation while remaining open to negotiating terms that address affordability concerns of buyers.

To be successful in this market, both buyers and sellers will need an experienced agent to provide guidance and solutions throughout the process. Whether you are buying or selling, I am here to guide you every step of the way. Just reach out and I'll help you get started.