This month, we’re looking back at Denver’s 2024 housing market and what experts predict for 2025. Let’s jump in!

From shock to stability

The Denver housing market showed steady recovery this year, proving its resilience after the 2022 rate shock pulled the rug out. The median sale price finished the year at $640,000, up from $615,400 in December 2023—a 3% bump that basically kept pace with inflation.

We also saw a modest but promising uptick in sales, with 34,379 homes sold compared to 31,781 in 2023.

Homes took longer to sell this year, averaging 20 days on the market—up from 16 in 2023 and a far cry from the 4.5 days we saw in 2021.

Meanwhile, mortgage rates threw a curveball. After starting the year with hopes they’d drop, they ended at 6.9%, a five-month high. That’s been tough for anyone who bought in 2022 hoping to refinance and lower their payment.

2024 wasn’t an exciting year for real estate headlines, but it showed how resilient the housing sector is. Buyers and sellers are still adjusting to today’s market, but the pieces are in place for more momentum heading into 2025.

2025 forecast roundup

National forecasts for the 2025 housing market are lukewarm. Mortgage rates are expected to stay higher than many hoped, with an average prediction of 6.33% by late 2025. Redfin is less optimistic, expecting rates to hover near current levels since the Fed is only expected to cut rates twice (they already held steady at their January meeting).

With rates still high and prices holding firm, affordability remains a challenge, keeping some buyers on the sidelines. Home sales are expected to stay below long-term averages but should improve slightly over 2024. At the end of the day, people who need to move will still move—whether eagerly or reluctantly!

As for prices? Predictions are all over the map. The average forecast calls for a modest 2.7% increase nationwide, but local outlooks vary. Zillow sees Denver prices barely moving (+0.6%), while Moody’s expects a 2.9% dip.

Bottom line? A steady, slow-moving market with small shifts rather than big swings. Graphs via ResiClub Analytics.

Thanks for reading! If you want to talk about the market or your own plans/goals, just reach out!   😊