As we progress into 2025, the Denver and Front Range real estate markets exhibit notable trends across both residential and commercial sectors. Here’s an overview of the latest developments:Residential Real Estate Market
Home Prices and Sales Activity
In January 2025, the Denver metro area experienced a 6% increase in closed sales, totaling 2,262 homes. The median price rose nearly 2% to $575,000. Buyers remained active, executing 3,076 contracts, though homes spent more time on the market, with median days increasing from 37 to 47.
February 2025 continued this momentum, with 2,694 homes closing and 3,529 properties going under contract, demonstrating sustained buyer interest.
Inventory Levels
The market saw a significant influx of new listings in January, with both attached and detached properties experiencing increases of over 100% compared to December. Year-over-year gains were 38.50% and 29.11%, respectively. Active inventory at month’s end was up 57.83% year-over-year, providing buyers with more options as the spring buying season approaches.
In February, new listings increased from 1,370 in January to 1,466, marking a 17.56% rise compared to the prior year. Pending sales were up by nearly 20% month-over-month and increased slightly year-over-year.
Market Dynamics
Homes in Denver are currently selling after an average of 42 days on the market, indicating a more deliberate pace in buyer decision-making.
This trend reflects a shift from the rapid turnover observed in previous years, suggesting a move towards a more balanced market.
Commercial Real Estate Market
Office Sector
Denver’s office market remains in flux, but early indicators suggest that vacancies may be approaching a peak. While weak tenant demand and limited new construction continue to weigh on the sector, declining sublease inventory and revitalization efforts in downtown Denver offer hope for stabilization in the coming years.
Retail Sector
The retail market in Denver has shown resilience, with increased leasing activity observed in early 2025. Retail spaces, particularly in high-traffic areas, continue to attract tenants, reflecting consumer confidence and spending.
Industrial Sector
The industrial real estate market remains robust, driven by the growth of e-commerce and logistics sectors. New warehouses and distribution centers are being developed to meet the increasing demand for storage and distribution facilities.
Land Sales and New Developments
Land sales have remained active, particularly in suburban and outlying areas such as Aurora, Longmont, and Brighton. Developers are targeting locations with available infrastructure and favorable zoning regulations. However, rising land prices and regulatory hurdles pose challenges, requiring strategic planning for long-term viability.
Economic Outlook
The Denver housing market is expected to maintain a steady trajectory throughout 2025, supported by economic resilience and continued population growth. However, high mortgage rates and economic uncertainties remain obstacles that could impact affordability and demand. Experts recommend that buyers and sellers stay informed about market trends and adapt their strategies accordingly.
Conclusion
The Denver and Front Range real estate markets are evolving toward stability, with increased residential inventory and more balanced pricing. While the commercial sector faces ongoing hurdles, particularly in the office market, areas like industrial real estate and suburban developments remain strong. If you have any questions, comments, or concerns about the market—or if you’re planning your real estate goals for 2025—please don’t hesitate to reach out to Jon or Kendall. We would love to discuss your plans and help you navigate this dynamic market.
