January proved to be a cold month for Denver with the lowest recorded temperature being -14 according to the National Weather Service. In fact, the monthly mean temperature made January the 21^st the coldest January on record for Denver. Were Denver’s cold temperatures last month due to the cooling off Denver real estate market?

Historically, Denver’s real estate market sees a healthy bump in January when it comes to new homes hitting the market and buyers coming back from taking a break due to the holidays. However, like Denver’s unusually low temperatures, Denver’s real estate market appears to be taking it’s time to warm up in 2025.

Although inventory levels did rise in January, new buyers seem to be taking longer to jump back into the market. This is causing the number of homes for sale to rise, which is allowing buyers to continue to be picky when it comes to making a buying decision. This trend, like in 2024, can  be seen in the lower price points, especially below $800,000. This could be blamed on interest rates, which continue to remain higher; in fact, we entered the year with rates still in the high 6s to low 7s. This is creating a unique opportunity for active buyers to be a little more aggressive with their offers, which results in them usually being able to purchase a home with seller concessions or below list price. However, just like Denver’s temperatures are starting to heat up, there are signs that Denver’s real estate market is doing the same. 

Most recently we have seen multiple homes go on the market and be swarmed with a higher number of showings. When the home is priced correctly, it is once again resulting in multiple offers and even selling above list price. This trend is more common in higher priced homes. This is a great indication that Denver’s market is showing signs of strength and could hint at what is to come as we get closer to the spring market. Interest rates have also been slightly more favorable with today’s borrowers being able to lock in rates closer to the mid 6s. With the Feds most recent meeting behind us and their decision to not make a rate cut or increase, we’re hopeful that this trend of a slightly lower interest rate is finally here to stay. This would make it easier for buyers of all price points to be able to comfortably make a purchasing decision knowing that their interest rate is more likely to be the same the day they go under contract as the day they originally talked to their lender.

Overall, the Denver market is remaining fairly flat as we get settled into 2025. However, with signs of increased demand from buyers, we could start seeing reduced inventory levels. This means there’s reason to believe that Denver’s real estate market is about to heat up for the spring market. If this prediction is accurate, now could be the perfect opportunity to purchase your next Denver area home and get in before future buyers, whose competition could drive values up and give the upper hand to sellers.

If you are thinking about making a change with your Denver home this year, don’t wait. Contact a TK Homes agent today and let’s talk about your goals. We will create a strategy that makes sense for you with the current Denver market conditions. It’s time to make your real estate goals a reality in 2025!

~ Written by CEO/REALTOR® Trevor Kohlhepp