I’ll say it again - 2025’s housing market is shaping up to behave differently than anything we’ve seen over the last decade.

BOULDER + DENVER

market update + statistics + local insights

The Facts:

Inventory is rising, as are average days on market.
Interest rates have remained mostly in the mid-to high 6’s for years.
Prices remain stable. *Ignore the City of Boulder statistic on the average price as it yo-yo’s up and down monthly due to the lower volume of sales - next month it’ll likely be up again by a double digit %.*

Is this the “new normal” and are we entering into a “balanced market”?

Yes and no.

Yes - I do believe that the markets (both buyers and sellers) are making peace with the interest rate environment remaining steady and “high” for the foreseeable future. The most recent inflation data was not supportive of interest rate relief, and markets are adapting to this “new normal” in the rate environment.

No - while some of our micro-markets are balancing, others remain strongly seller favorable. We haven’t been in a balanced market for well-over-a-decade, and the yin/yang to achieve balance is going to be bumpy.

As we start the early spring market I’m on the lookout for:

Inventory Behavior - does it grow more rapidly than years past, and with the same lackluster absorption as 2024? Contextually, in 2024 we had the lowest amount of home sales nationally since 1995, with a population growth of 20M+…
Average Days on Market - if this metric increases during the time of year (Feb—May) where we usually see it decrease, there will be some important implications/planning for the final half of the year. Listing/pricing strategies will adjust, as will the approach on the buy-side.
List:Sold Price Ratio - do we expect prices to hold (within 97% or so of list) or broader price erosion?

If the stars align and IF all of the above postulations come to pass we’ll be working with a very exciting new market in 2025. If this is your year start soon - preparation is the key to success in any market.