Year to date 2025 has the third most new listings and the 4th most new contracts in the last 15 years.  We’ve been talking about 2025 being the year of increased market volume due to pent up seller desire to move and buyer demand to buy.  So far, the numbers do not disappoint.  

However, it remains to be seen whether we hit some tipping point of affordability to temper that volume.  With mortgage rates continuing to rise and the pending impact of natural disasters on homeowners insurance, the ability to buy may be impacted.  But with more wealth moving in to Colorado, a stable population and strong economy, expectations remain high. 

Here’s a breakdown of what we see so far.  

• Days on market will come down rapidly.  Days on market is down to 57 days and historically declines for the first 16-18 weeks of the year.  Expect average days on market to decline to approximately 30 days this year.  

• Price reductions will decrease.  As of the last week of December, 57% of listed homes had experienced a price reduction.  This number is already down to 52.2%.  Last year saw a low of 22.7% of properties experiencing a price reduction in late April. I don’t think we get quite that low this year.

• Year to date showings are strong, the third highest in the last 8 years, demonstrating continued buyer resilience in the face of higher mortgage rates.  

• The average sold price is starting the year off strong, over $50,000 higher than the same time last year.  The average sold price usually peaks between the 20th and 24th weeks of the year before beginning a slow seasonal decline as inventory increases and demand slows.  

• Inventory is holding steady at 6,943 homes for sale as under contract and withdrawn listings almost exactly matched new homes to the market.  Expect inventory to be relatively stable to modestly climbing through late March before a fairly rapid rise through the end of the summer.

The easy to anticipate market conditions are forming as expected, but the big variable we will continue to keep our eye on as it is the number one predictor of market volume, buyer demand and ultimately home value growth; interest rates.  Most are expecting a rate decline by late 2025, but it appears that as long as rates don’t climb too much further, the market will remain steady in volume and modestly appreciating.