The year 2025 has started with much fanfare! It arrived with horrible record breaking freezing temps and snow in Florida. But, right now everyone is curious about real estate market projections and we seek to peek into the future.
Denver Metro Board of Realtors 2025 published a Market Forecast: Modest Gains Amid Stabilization, with expert insights from Steve Danyliw, Past Chair of the DMAR Market Trends Committee, and Nadia Evangelou, Senior Economist & Director of Real Estate Research.
“Looking ahead, both Danyliw and Evangelou forecast a year of stabilization for the Denver housing market, with opportunities emerging for buyers and sellers despite affordability challenges.”
Steve Danyliw’s 2025 Outlook
“Modest Growth in Sales: Detached home sales are projected to grow 4-6%, while attached sales may decline by 7-10%, impacted by rising HOA fees.
Price Stability: Median closed prices are expected to rise by 0-3%, with inventory levels forecasted to grow slightly, offering more options for buyers.
Mortgage Rates: Rates are anticipated to range from 6.25-7%, with builders continuing to use mortgage buydowns to attract buyers.
“Affordability will remain a hurdle for buyers,” Danyliw predicts. “Sellers will need to adopt strategic approaches to compete in a market defined by incremental changes rather than dramatic shifts.”
Nadia Evangelou’s National and Denver Perspectives
“Evangelou sees 2025 as a year of recovery and opportunity, supported by stabilizing mortgage rates and robust economic drivers.
Improved Affordability: While rates above 6% may limit significant affordability gains, stabilization near 6% will encourage more buyers to reenter the market.
Job Growth and Migration: Denver’s job market, which has outpaced the national average, and its net migration gains position it as a resilient housing market.”
Inventory and New Construction: Increased inventory and a rise in new construction will provide buyers with more choices, moderating price growth to an estimated 2%.”
“Denver’s combination of strong job growth, positive migration trends and favorable demographics make it a robust and desirable housing market,” Evangelou explains. “As the lock-in effect eases and inventory improves, both buyers and sellers will find opportunities to succeed.”
2025 Wrap-Up
Bankrate predicts the bottom line, “The continued combination of high mortgage rates, steep home prices and insufficient inventory levels points to 2025 being another tough year for buyers and sellers. However, many buyers seem to no longer be holding out for lower rates, as seen by a recent uptick in sales numbers. This could be a hint at more movement in the market in 2025 than there was in 2024.
The complexities of the current conditions mean that, now more than ever, it’s smart to lean on the guidance of an experienced local real estate agent. If you want to enter the housing market in 2025, whether as a buyer or a seller, let a pro lead the way for you.”
That’s why we are here for you at Katchen Company to guide you every step of the way.
2024 Year-End Review and 2025 Housing Market Outlook
**And if you’re curious, discover why Katchen Company’s Co-owners Kathy and Ed Boyle got into real estate and what has kept them in the profession!