Colorado Real Estate Market Update: What Buyers and Sellers Need to Know in 2025
As we step into a new year under a new presidential administration, predicting what’s ahead for the real estate market remains a challenge. Policies will shift, interest rates may fluctuate, and home values will continue to respond to economic conditions. However, my goal as a Colorado Realtor® and Certified Divorce Real Estate Expert (CDRE®) is to help my clients navigate the ever-changing landscape—especially those making crucial real estate decisions during a divorce.
Let’s take a look at the key national trends shaping the market, along with a closer look at what’s happening right here in Colorado.
National Real Estate Trends
1. Mortgage Rates Are Stabilizing—For Now
Mortgage rates saw major fluctuations in 2024, averaging 6.7% for the year, with a temporary dip in the fall. While some experts anticipated a decline in 2025, many are advising against early predictions. Right now, rates appear to be stabilizing, but they remain dependent on upcoming economic policies. For those considering a divorce equity buyout, securing a favorable interest rate is key—so it’s important to keep an eye on any changes.
2. Home Sales Are on the Rise
Despite high mortgage rates and rising home prices, home sales have increased by 24.6% compared to last year. This marks the 15th consecutive month of inventory growth (per Realtor.com), with new listings increasing by 10.8% in January. This is great news for sellers, as more buyers are entering the market despite financial challenges.
3. Homes Are Taking Longer to Sell
While sales are up, homes are sitting on the market longer. In January, the average days on market (DOM) reached 73 days, up from last year and marking the slowest January market since 2020. However, it’s still 11 days faster than pre-pandemic levels (2017-2019). For those considering selling due to divorce, strategic pricing and marketing will be crucial to attract the right buyers quickly.
Local Colorado Market Trends
Home Prices Are Trending Upward
Colorado’s housing market is showing steady price growth across major counties:
Area | Jan 2023 Median Price | Jan 2024 Median Price | Year-to-Year Change |
---|---|---|---|
Adams County | $532,428 | $549,042 | +3.1% |
Arapahoe County | $671,683 | $678,473 | +1.0% |
Denver County | $742,255 | $806,991 | +8.7% |
Douglas County | $776,702 | $863,371 | +11.2% |
🔹 Key Takeaway: Prices naturally fluctuate depending on the season. Spring looks different from fall, and mid-summer behaves differently than year-end. That’s why we use year-over-year comparisons to get the most accurate reading on pricing trends.
Days on Market: Homes Are Taking Longer to Sell
The time it takes for homes to sell is increasing in most areas:
Area | Jan 2023 DOM | Jan 2024 DOM | Year-to-Year Change |
---|---|---|---|
Adams County | 47 days | 51 days | +8.5% |
Arapahoe County | 49 days | 43 days | -12.2% |
Denver County | 48 days | 49 days | +2.1% |
Douglas County | 57 days | 63 days | +10.5% |
🔹 Why This Matters: Days on Market (DOM) is largely driven by supply and demand. Rising interest rates can slow sales, while job growth can accelerate them. When DOM increases, home prices tend to soften. For sellers, this means proper pricing is essential to attract buyers quickly.
What This Means for You
The market is constantly shifting, and outdated valuations (older than 90 days) may no longer reflect true market value. If you’re considering selling, refinancing, or need expert advice on handling real estate in a divorce, I’m here to help.