The Denver housing market wrapped up the year looking... well, a lot like last year. If you were expecting dramatic shifts, you might need to change the channel. This year started as more of an unbiased documentary than a soap opera. But that doesn’t mean there aren’t trends worth watching. Buyers have more inventory to choose from, sellers are negotiating more than they did in the pandemic frenzy, and home prices continue to climb. (Just not at breakneck speed.) As we head into spring, a season that typically sees increased buyer activity, we could be in for more of the same instead. February 2025 Denver real estate trends clue us in.
February 2025 Denver Real Estate Trends: A Buyers’ Playground?
According to the Denver Metro Association of Realtors, Denver saw a 135.43% month-over-month spike in new listings. Yes, you read that right. Year-over-year, that’s a 31.92% increase, marking a sharp shift in seller behavior. Buyers now have 11.61% more active listings to choose from compared to last month, a staggering 57.83% more than last year.
Despite this flood of new options, pending sales only climbed 31.83% MOM and stayed nearly flat (-0.07% YOY), meaning buyers are taking their time, weighing options, and — dare we say — gaining leverage. Closed sales tell a similar story, dropping 30.56% MOM but edging up 2.31% YOY, suggesting that while activity slowed in December, demand still holds firm. If historical trends repeat, we can expect an uptick in both pending and closed sales by mid-spring, when buyers who held off in winter re-enter the market.
Prices Holding, but Sellers Are Playing Ball
Average closed prices ticked up a modest 0.57% MOM and 5% YOY, while median prices dipped slightly (-0.51% MOM, 1.77% YOY). So, while values remain strong, they’re not skyrocketing. What’s more telling? The close-price-to-list-price ratio barely moved (0.02% MOM, 0.04% YOY), signaling that sellers are more willing to negotiate. If typical seasonal trends play out, home prices may see a slight increase in the spring as more buyers return to the market, but competition is unlikely to reach the bidding war levels of past years.
More Days on the Market, More Room to Negotiate
Homes are sitting longer, with the average days in MLS up 8.93% MOM and 24.49% YOY. Median days on the market saw an even sharper rise, up 12.5% MOM and 28.57% YOY. For buyers, that means more time to shop, compare, and, in many cases, ask for seller concessions. While multiple offers are still happening, they’re nowhere near the bidding wars of 2021 and 2022. If demand picks up in the spring as expected, we could see days on market decrease slightly, but buyers will probably still have more flexibility than in previous years.
The Rental Market Factor
Denver’s rental market took an unexpected turn, with multi-unit properties experiencing the largest quarterly rent decline on record in January. A surge in new apartment supply overwhelmed demand, sending vacancy rates up. If this trend continues, it could cool off investor activity and keep more first-time buyers in the market longer. Spring could be a pivotal season for rentals. If rents continue to drop, some potential buyers may opt to remain renters longer, while others could take advantage of softening home prices and make the leap into homeownership.
Mortgage Rates & The Spring Outlook
Mortgage purchase applications dropped in December, but January saw a 27% increase, signaling that buyers might be re-entering the market in anticipation of potential rate cuts (or just in resignation to the new interest rate normal). Historically, active listings drop from December to January by 3.85% — but this year, they jumped 11.61%, marking a record shift. Experts predict modest home price increases this coming season, but the market isn’t expected to return to the fever pitch of many a past spring. But if rates do ease, we could see a spring surge as sidelined buyers take advantage of improved affordability.
Corcoran Perry & Co. Featured listing: 760 Jersey Street, Mayfair
The Denver Housing Market Bottom Line as We Head Into Spring
Denver’s housing market isn’t making dramatic moves, but it is shifting in small but meaningful ways. Buyers still have more options, sellers are still making deals happen, and home values are holding steady without skyrocketing. As we head into spring, a season that typically sees renewed buyer demand, all eyes will be on mortgage rates, the rental housing market, and buyer sentiments to see whether they tip the market… one way or another.
If you’re waiting for the perfect moment, just know this: the market waits for no one. The key is understanding where things are heading and making a move when it makes sense for you.
Thinking about buying or selling? Now’s the time to have a plan. Connect with one of our Colorado Realtors® to start making one.
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