January 20, 2025
As published in DMAR Market Trends, January 2025
An increase in showing activity over the holidays suggest that more buyers are entering the market and are ready to start transacting real estate in the new year.
While the Denver market in 2025 may bring “more of the same,” consistency has its benefits. Despite high interest rates, home values continued to appreciate. With no promise of lower rates ahead, buyers may grow more willing to make offers.
Condos are pulling out all the stops to attract buyers, offering incentives like free parking and prepaid HOA dues. For buyers looking for a deal, condos are a great option!
A local non-profit has purchased its first 23-unit apartment building with the goal of making rent affordable by curbing rent increases and preventing gentrification in east Denver.
New apartment communities continue to emerge across the Denver Metro area, yet demand remains strong, suggesting that homeownership may be increasingly out of reach for many Denverites. Over the past 12 months, the region added nearly 21,160 new apartment units, with approximately 20,400 new leases signed during the same period.
Denver area traffic has returned to pre-pandemic levels. While remote work remains prevalent, many companies are requiring employees to return to the office, contributing to highway congestion.
Property owners will begin paying a “sidewalk fee” as part of Denver’s program to repair and improve the city’s walkability.
Denver metro’s Home Price Index, a measure of property appreciation, hit another record high during Q3 2024, surpassing the previous peak in Q2 2022.
To be among Colorado’s one percent of earners, individuals must have an adjusted gross income of at least $876,743 annually. Colorado ranks eighth in the nation for wealthy states.
Rental algorithms, which are disproportionately higher in Denver, are drawing attention and facing legal challenges from regulators, economists and civic leaders concerned that AI technology is stifling competition and inflating costs for consumers.
The Downtown Development Authority has approved $570 million in tax-funded projects over the next 13 years. These projects aim to support housing, jobs, culture, parks and mobility renovations as part of a “downtown renaissance” in Denver.
Denver’s median asking rent fell to $1,710 last month, a 5.7% year-over-year decrease. This ranks Denver sixth among 10 major metros experiencing weakening rental markets.
MORTGAGE NEWS
Affordability is a measure of mortgage rates, home prices and income. As mortgage rates hopefully stabilize or drop slightly and home prices rise slightly, continued wage growth will be the key factor in improving affordability in 2025.
Over the past three years, mortgage rates experienced volatility, with trading ranges of 350 basis points, 200 basis points and 140 basis points. This volatility creates uncertainty and is expected to continue through 2025.
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