As published in DMAR Market Trends, February 2025

The spring buying season is off to a slow start, but the spring selling season is in full swing resulting in a slight buyer’s market for the start of the season.
 
Buyers prefer turnkey properties. The lack of cash and desire to fix up a house after purchasing are the main reasons why turnkey properties have disproportionate buyer demand.
 
Increased supply combined with falling demand, economic uncertainty and sticker shock have set a record for the month of January—one in seven pending homes were cancelled nationally, with Denver above the national average at 15.1%.
 
Sellers taking advantage of “coming soon” status in the MLS receive more traffic on opening weekends than those who do not.
 
To create space for housing, restaurants and other developments, the Denver City Council banned the construction of gas stations near train stops, low-density residential neighborhoods and existing gas stations.
 
Denver’s Loretto Heights Theater renovation project breaks ground this summer at an initial construction cost of $60 million. Half of the funding is provided by Denver’s 2021 RISE bond, while the other half comes from the Denver Arts & Venue budget.
 
House Bill 1272 currently moving through the Colorado legislature regarding construction defect liability, has the support of Governor Jared Polis and Republicans, but faces criticism from progressive Democrats who argue that it goes too far.
 
Denver city employees will continue working in person three days a week, a policy maintained despite earlier campaign promises from Mayor Mike Johnston to require full-time office work. City officials say this hybrid approach aims to boost downtown activity and support local businesses amid challenges like limited office space and lingering pandemic-related changes.
 
According to the 2025 Colorado Economic Impact Study, Denver International Airport is the state’s largest economic engine, contributing $47.2 billion annually to the state’s economy.
 
The RidgeGate master-planned community, located south of Denver, is set for significant expansion in 2025. Plans include adding residential units, retail spaces, parks, civic facilities, an amenity center and a school, which will contribute to the area’s growth and potentially impact the local real estate market.
 
Colorado’s Public Utilities Commission recently approved new peak-rate times for Xcel Energy. Starting in 2025, the company will charge more for electricity between 5pm and 9pm.
 
Denver is a trendsetter once again, making sidewalk upkeep a public responsibility. It is now the largest U.S. municipality to fund and maintain this critical pedestrian infrastructure.
 
Conversations are ongoing regarding a potential housing bubble or crash; however, what we are actually experiencing is the third year of a housing recession, as indicated by home sales. National pending home sales hit their lowest level since records began in 2001. Existing home sales are now comparable to their levels in November 1978, while new home sales have returned to pre-pandemic levels.
 
Consumer confidence posted its largest decline in February since 2021, as consumers grew more pessimistic about the economic outlook and rising inflation.
 
While much of America faces the pressure of rising prices, the top 10% of wage earners are doing remarkably well. They now account for 49.7% of all spending and 33% of the GDP.
 
Kitchen trends for 2025 have circled back to granite counters, beige color tones and warm woods, according to interior designers interviewed by the Wall Street Journal.
 
 
MORTGAGE NEWS
February saw a slew of slowing economic data reports, giving mortgage rates a bit of a retreat. The 30-year fixed rate ended February at 6.79%, the lowest of the year.
 
Mortgage purchase applications at the end of February 2025 were at the lowest level since 1995, excluding the years 2023 and 2024.