Denver area realtors are cautiously optimistic about the housing market in 2025.
After a largely static year, realtors expect stable interest rates, a balanced market, more transactions, and a renewed interest in urban living.
“I don’t think the market will change significantly,” said Craig Harcek with 8z.
“Denver largely has a static population and I don’t think inventory will grow so fast we’ll see a deflation in value.”
Stacie Staub with West+Main agreed. “Of course, we’re hoping that the market will heat up in 2025, but the little bit of balance that we are feeling now at the end of the year is a nice reprieve.”
Interest rates likely won’t change much
After the Federal Reserve made three cuts to its key interest rate benchmark since September, it indicated it would likely only make two cuts in 2025.
That means interest rates will likely remain above 6% for at least the next year.
“I’d love to think they will come down,” Harcek said. “I expect we will settle in with rates at 6.5-7%.”
More houses available
Available housing in the Denver metro area remains historically low, increasing prices.
In 2025, more sellers will decide to put their homes on the market, adding inventory, and builders will continue building, but it will take time to meet demand.
“I expect inventory to gradually improve, but it’ll take time,” said Amy Lessinger, RE/MAX, LLC president.
“Sellers holding onto lower mortgage rates might start to ease into the market as rates stabilize. That shift, combined with new construction catching up, will help balance supply, though competition will remain strong for move-in-ready homes.”
More transactions
Following a slow 2024, realtors anticipate transaction volume will increase in 2025 as major life events like marriages, births, deaths, divorces, and relocations drive people to move.
“We’ve had a lot of people standing pat for the past couple of years with the golden handcuffs of low interest rates,” Harcek said.
“I think in 2025 we will have moved past some of the uncertainty. We’ll be past the presidential election, we achieved a soft landing, a lot of the big term items that led to uncertainty have been settled. People will feel liberated to move forward.”
Lessinger said demand will pull buyers into the market.
“The desire for homeownership remains strong, driven by millennials entering their prime buying years and Gen Z starting to make their move,” she said.
“While affordability and rates will continue to play a role, a sense of ‘waiting it out’ can only last so long — people need homes.”
City demand returns
As the pandemic drove buyers to the suburbs, returning back-to-office policies are prompting a resurgence in city center interest, marking the most significant rise in ten years, according to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors.
Staub said she’s already seeing more demand for downtown properties with amenities like Upton Residences, a new condo building that’s taking ownership reservations now.
“As companies start to bring their remote workers back to the office, people are looking for a short commute and a city lifestyle with amazing amenities.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
