The Pulse

Current Market Snapshot 

The Denver housing market is showing signs of increased activity as we move further into 2025. Here are the key facts: 

Inventory Surge: January saw a significant 44% year-over-year increase in active listings, marking the highest start-of-year inventory since 2014. Some of the inventory however is carryover from withdrawn and expired listings in 2024.  

New Listings: 4,339 new properties entered the market in January, a substantial 135.43% increase from December 2024. 

Median Home Price: Prices remained fairly level at $575,000, a decrease of 0.51%.  Days on Market: Homes are spending a median of 45 days on the market, up 12.5% from December 2024.  

Pending Sales: Demand, as measured by pending sales, increased by 31.83% compared to the previous month. 

Updated | Market Trends | Outlook

Balanced Market Emerging 

We're seeing a shift towards a more balanced market. The surge in inventory gives buyers more options, while sellers are adjusting their strategies to remain competitive. This is creating opportunities for both sides of the transaction. 

Price Stabilization 

While we've seen moderate price growth, the market is showing signs of stabilization. The 3% year-over-year increase in median home prices indicates steady appreciation without the dramatic spikes of previous years. 

Buyer Behavior

Buyers are becoming more selective, taking advantage of the increased inventory. They have more leverage in negotiations, often securing seller concessions or below-list-price purchases. 

Looking Ahead

1. Gradual Recovery: Experts predict a moderate increase in home sales and a slight rise in median home prices throughout the year. 

2. Interest Rates: While still higher than historical lows, rates are showing signs of stabilization, which could encourage more buyers to enter the market. 

3. New Construction: The pipeline for new apartment units is slowing, with only 8,500 units expected in 2025, down from 18,400 in 2024. This could lead to a more balanced rental market. 

4. Market Segments: The luxury home market, particularly properties between $1 and $2 million, is showing resilience with increased sales activity. 

Conclusion

The Denver real estate market in 2025 is characterized by increased inventory, stabilizing prices, and a shift towards a more balanced market. For buyers, this means more options and potentially better deals. For sellers, it emphasizes the importance of realistic pricing and effective marketing strategies. 

As your experienced Denver realtor, I'm here to help you navigate these market conditions. Whether you're looking to buy, sell, or invest, now is an excellent time to explore your options in our dynamic Denver market.

What are tariffs?

Tariffs are taxes imposed by governments on goods imported from other countries. When a product crosses a national border, the importing company must pay this tax, which is typically a percentage of the product's value. For example, if there's a 25% tariff on steel, a company importing $100,000 worth of steel would need to pay $25,000 in tariffs.

The main purposes of tariffs are to protect domestic industries and generate revenue for the government. By making imported goods more expensive, tariffs can encourage consumers to buy locally produced alternatives. This can help protect jobs and industries within the country. However, tariffs often lead to higher prices for consumers, as companies usually pass on the increased costs. They can also spark trade disputes between nations, potentially leading to broader economic consequences.

Perhaps you thought it was another county paying a tax to export products to us... Not quite what the new administration has been transparent on, right?

Impact on Real Estate

Tariff increases would have significant impacts on the US real estate market, particularly in the areas of construction costs, home prices, and overall market dynamics.

Construction Costs

The implementation of tariffs on key building materials would directly increase construction costs.

Specifically:
Softwood lumber imports from Canada, which account for about 30% of US usage, would face a 25% tariff, potentially raising the rate to over 39%. Gypsum imports from Mexico, used in wallboard production, would also be subject to a 25% tariff. Steel and appliance imports from China would incur additional costs.

These increased material costs could add $3 billion to $4 billion to overall construction expenses[1]. Smaller home builders with tighter profit margins would likely be hit hardest, but larger builders would also feel the impact..

Home Prices

The rise in construction costs would likely be passed on to consumers, leading to higher home prices.

This could:
1. Exacerbate the existing affordability crisis, especially for first-time buyers.

2. Reduce the number of new homes built or increase prices for newly constructed homes. 

3. Potentially drive buyers towards older, existing homes, increasing demand and prices in that market segment as well.

Market Dynamics

The broader effects of tariffs on the real estate market could include:
1. Slower housing construction: Higher material costs and reduced profit margins might make new construction projects less appealing to developers, potentially worsening existing housing shortages.

2. Economic uncertainty: Tariffs could lead to lower economic growth, potentially weakening housing demand if there is significant labor market deterioration.

3. Mortgage rates: If inflation escalates due to tariffs, interest rates could potentially increase, affecting affordability and buyer purchasing power.

4. Investment shifts: In times of economic uncertainty, real estate might become a more attractive investment option compared to stocks, potentially supporting property values.

5. Regional variations: Areas heavily reliant on imported building materials may experience more significant effects on their housing markets.

The combination of these factors could create a challenging environment for the US housing market, potentially leading to reduced affordability, slower construction, and increased market uncertainty. However, the full impact would depend on the specific implementation and duration of the tariffs, as well as any potential retaliatory measures from affected countries.

Primary Residence Required:

Denver, Mountain View, Wheat Ridge, Arvada, Douglas County

Investment Properties Allowed: Mountain View, Westminster, Wheat Ridge, Arvada, Douglas County

Total License Cap: Denver no limit, Mountain View no limit, Westminster no limit, Wheat Ridge 2% Cap, Arvada no limit, Douglas County no limit

Limited Number of Days: Arvada 240 Days

Rentals Not Permitted: Parker, CO

For additional locations or details reach out directly to me. Please note that regulations are subject to change and the responsibility of the homeowner to ensure they are compliant with local rules and regulations.

Source: STR Regulations, 2024

As a Denver realtor, it's crucial to keep our clients informed about the latest developments in the housing market, including factors that affect mortgage rates. The Federal Reserve's recent decision to hold interest rates steady and the response from President Donald Trump are significant news items that could impact the real estate landscape.

On January 29, 2025, the Federal Reserve announced its decision to maintain the target range for the federal funds rate at 4.25% to 4.5%. This pause in rate cuts comes after three consecutive reductions totaling one percentage point since September 2024. The Fed's decision reflects their ongoing efforts to balance economic growth with inflation control, as recent indicators suggest that economic activity continues to expand at a solid pace while inflation remains somewhat elevated.

Interestingly, President Donald Trump, who has been a vocal critic of the Federal Reserve in the past, has recently expressed support for this decision. In a surprising shift from his earlier stance, Trump stated, "I'm not surprised. Holding the rates at this point was the right thing to do". This change in tone comes just days after he had called for immediate rate cuts during his address at the World Economic Forum in Davos. As real estate professionals, we'll be closely monitoring how this alignment between the Fed's actions and the President's views might influence market stability and consumer confidence in the coming months.

President Donald Trump, who began his second term on January 20, 2025, has outlined several initiatives aimed at addressing the housing affordability crisis and boosting the real estate market. Within his first few days in office, Trump issued an emergency order directing executive departments and agencies to "deliver emergency price relief," which includes lowering housing costs and expanding supply. 

The Trump administration has identified regulatory requirements as a major factor contributing to the housing affordability issue. In his previous term, Trump reduced regulatory costs by almost $11,000 per household. For his current term, he has proposed using federal land for housing development to help meet demand, suggesting the creation of "zones" with ultra-low taxes and regulations to stimulate small business job creation. 

Trump has also expressed a desire to lower mortgage rates, aiming for around 3% or potentially lower. While the president doesn't directly set mortgage rates, his policies and appointments to the Federal Reserve could influence them. Additionally, Trump has indicated plans to increase the cap on state and local property tax deductions, which were set at $10,000 as part of the 2017 tax law. 

Real estate professionals should be aware that these proposed changes could potentially impact the market in various ways. However, it's important to note that many housing regulations, such as zoning laws and permitting, are controlled by local governments. The federal government's role in implementing significant changes may be limited without cooperation from state and local authorities.

Current mortgage interest rates have seen an uptick in recent days, reflecting ongoing economic uncertainties and market dynamics. As of January 10, 2025, the average 30-year fixed mortgage rate stands at 7.03%, up from 6.95% a week ago. Similarly, 15-year fixed rates have increased to 6.34%, while 5/1 ARM rates have risen to 6.55%.

These rate increases come despite the Federal Reserve's recent rate cut in December 2024. Several factors are contributing to the current rate environment, including inflation concerns, political transitions, and global economic developments. The upcoming Federal Reserve announcement on January 29 is eagerly anticipated by market watchers for potential impacts on future rate trends. 

For prospective homebuyers and those considering refinancing, it's crucial to understand that mortgage rates can fluctuate daily and vary based on individual financial profiles. While current rates are higher than historical lows seen in recent years, they remain within a range that still allows for homeownership opportunities for many Americans.

As we look ahead to 2025, the nationwide housing market is expected to show signs of improvement, offering a mix of opportunities and challenges for both buyers and sellers. Several reputable sources have weighed in with their projections, painting a picture of a market that's gradually becoming more balanced. 

Zillow, a leading real estate platform, forecasts a modest 2.6% increase in home values for 2025, mirroring the growth seen in recent years. They also anticipate a slight uptick in existing home sales, projecting 4.3 million transactions in 2025, up from the expected 4 million in 2024. This suggests a market that's slowly regaining momentum after a period of stagnation. 

The National Association of Realtors (NAR) presents a more optimistic outlook, predicting a 9% rise in existing home sales for 2025. Lawrence Yun, NAR's chief economist, attributes this potential growth to improving job numbers and recent gains in the stock market, which could motivate more Americans to enter the housing market. 

However, it's important to note that these projections come with caveats. The Mortgage Bankers Association (MBA) forecasts a somewhat sluggish economy through 2027, which could impact the housing market. Mortgage rates will play a crucial role in shaping market conditions, with some experts anticipating potential rate cuts in 2025. 

For potential buyers, there's a silver lining on the horizon. Zillow suggests that more inventory should become available in 2025, providing buyers with increased options and potentially more leverage in negotiations. This could signal a gradual shift towards a more balanced market, offering some relief from the intense seller's market we've experienced in recent years. 

As we approach 2025, it's clear that the housing market will continue to evolve. While challenges persist, the overall outlook suggests a market that's slowly stabilizing and potentially offering more opportunities for both buyers and sellers. As always, local market conditions may vary, and it's essential for both buyers and sellers to stay informed about their specific area's trends and work closely with a knowledgeable real estate professional.

As a Denver realtor, I've seen firsthand how going above and beyond when preparing your home for sale can make a significant difference in the market. In today's competitive real estate landscape, and with ample homes for Buyers to sift through, it's crucial to put your best foot forward and create a lasting impression on potential buyers. 

First impression is everything.  

To start, focus on enhancing your home's curb appeal. Mow the lawn, trim bushes, and add some vibrant potted flowers to your front porch. Consider power-washing your driveway and exterior siding to give your home a fresh, clean look. These simple steps can dramatically improve the first impression buyers have of your property. 

Inside, deep clean every nook and cranny, including carpets and hard-to-reach areas. Declutter and depersonalize your space to help potential buyers envision themselves living there. Consider professional staging to showcase your home's best features and create an inviting atmosphere. Remember, a well-presented home can often command a higher price and sell more quickly. 

Going above and beyond also means being proactive in the selling process. Hire a professional photographer to capture high-quality images of your home for online listings. In today's digital age, many buyers start their search online, so make sure your listing stands out with stunning visuals. Additionally, consider creating a virtual tour to give potential buyers a comprehensive view of your property from the comfort of their own homes. 

By taking these extra steps, you're not just selling a house; you're offering a lifestyle and a future home. This approach can lead to more interest, potentially multiple offers, and ultimately, a successful sale that exceeds your expectations.

As we approach the 2024 election, many in the real estate market wonder how the political climate and recent Federal Reserve decisions will impact the housing landscape. Historically, the real estate market experiences some shifts during election years, often due to temporary uncertainty rather than long-term trends. Political outcomes can shape specific housing policies and economic conditions, such as tax reforms or homeownership assistance programs. Still, broader economic factors—like interest rates and housing supply—typically play a more significant role in market behavior. 

Data reveals that election years don’t necessarily reduce home values or slow sales. In fact, home prices have often risen slightly more during election years. Between 1987 and 2023, home values grew by an average of 4.84% in election years, compared to 4.44% in non-election years. This suggests that while elections create a short-term pause, buyers and sellers generally resume activity, and the market continues its trajectory after November. Certain buyers, such as luxury homeowners, may exercise extra caution this year, but the overall market isn’t expected to undergo drastic changes based solely on the election outcome.

Hold onto your hats—this month, the Federal Reserve slashed interest rates by a solid 50 basis points. If you’re in the market for a home, looking to sell, or ready to invest, this is news you can’t ignore. But what does this bold move actually mean for you? Let’s break it down. 

For Buyers: Your Window Just Opened Wider  Lower interest rates translate to cheaper borrowing. In other words, if you’ve been waiting on the sidelines, now’s the time to pounce. The rate cut can shave hundreds off your monthly mortgage payments, meaning you can afford more home for less money. Think of it as unlocking more buying power, letting you stretch that budget without feeling the extra pinch. Plus, with rates this low, locking in a fixed-rate mortgage now could future-proof your investment, even if rates spike later.  

For Sellers: A New Wave of Buyers  If you’re selling, this is the golden opportunity you’ve been waiting for. With borrowing costs lower, buyers who were previously priced out could be flooding the market, driving demand up. This added competition might help you sell faster and potentially at a higher price. That said, it’s still crucial to price strategically and stage your home well—buyers are more cautious than ever despite the lower rates. 

For Investors: Time to Revisit the Playbook  Real estate investors are probably grinning right now. Lower rates mean cheaper financing for those investment properties you’ve had your eye on. Whether you’re into flipping or buy-and-hold strategies, lower carrying costs can lead to better returns. But be aware of market saturation in your target areas—lower rates could also draw in more competition, so choose your projects wisely. 

For the Housing Market: A Shot in the Arm  This rate cut could provide a much-needed boost to the housing market, particularly in regions where sales have slowed due to economic uncertainty. Expect to see more activity, more competition, and—hopefully—more balanced growth. However, if the economy doesn’t rebound as quickly as the Fed hopes, we could still see some long-term volatility, so brace for potential swings in housing prices down the line. 

So, What’s Next?  While the Fed’s rate cut is great news, it’s not without risks. If inflation kicks in or economic growth remains sluggish, rates could rise again. But for now, this is a unique window of opportunity that favors nearly everyone—from first-time buyers to seasoned investors. Whether you're ready to buy, sell, or invest, the game has just changed, and the ball is in your court. 

If you’re thinking of making a move, now’s the time to strike while the rates are hot. Don’t miss out!

Denver is transforming into a more sustainable and vibrant city with two notable initiatives: the Green Roof Ordinance and the expansion of its bike network. These efforts reflect Denver's commitment to improving urban life, reducing environmental impact, and fostering healthier lifestyles. 

The Green Roof Ordinance: A Green Leap Forward 

In 2017, Denver residents voted in favor of the Green Roof Initiative, now known as the Green Building Ordinance. The ordinance requires new buildings larger than 25,000 square feet to install green roofs, solar panels, or a combination of both. The purpose? To reduce energy consumption, mitigate the urban heat island effect, improve stormwater management, boost biodiversity, and enhance air quality. Existing buildings that undergo major roof replacements must also comply with the ordinance. 

The benefits of green roofs are numerous: they help reduce energy bills by providing natural insulation, lower ambient temperatures, and contribute to a healthier urban environment. Solar panel installations, on the other hand, offer significant economic benefits, including federal tax deductions that can cover up to 50% of the cost. Businesses opting for solar panels may also qualify for the Federal Investment Tax Credit (ITC), which provides a 30% credit on solar installation costs. Additionally, these installations can increase property value and appeal to eco-conscious tenants and consumers. 

Expanding the Bike Network: A Path to a Better City 

Complementing the green roofs is Denver's expansion of its bike network, a major initiative aimed at making the city more accessible, reducing traffic congestion, and promoting an active lifestyle. The Denver Moves: Bikes plan sets ambitious targets for increasing the number of bike lanes and protected bikeways throughout the city. It includes over 125 miles of new bike lanes, providing safer routes for cyclists and enhancing connectivity across neighborhoods. 

With the expansion, more residents will find cycling a viable alternative to driving, reducing their carbon footprint and improving public health. To support this, the city has introduced bike-sharing programs and improved bike infrastructure, including protected lanes and traffic-calming measures. 

Denver's commitment to sustainability through the Green Roof Ordinance and the expansion of the bike network is reshaping the city for the better. These initiatives not only promote environmental responsibility but also enhance the quality of life for all residents. As a city on the rise, Denver is leading by example, creating a greener, more connected, and healthier community.

Today, we pause to remember the lives lost and the heroes who emerged in the face of unimaginable tragedy on September 11, 2001. It's been over two decades, and I still remember everything about that day. As my memories remain vivid, my emotions are still raw. The resilience of the American spirit was tested on that day, and what we saw in response was nothing short of extraordinary.

We honor the nearly 3,000 innocent lives lost and extend our deepest sympathies to the families who have had to endure such profound loss. The pain they carry is immeasurable, and our thoughts and prayers are with them ALWAYS.

We also pay tribute to the brave first responders—firefighters, police officers, paramedics, and countless volunteers—who rushed toward danger. Their courage, selflessness, and unwavering commitment to saving lives remind us of the goodness that exists in humanity. In the face of fear and uncertainty, they were the light that guided so many to safety.

To those who continue to bear the scars, visible and invisible, from that day, we stand with you. We recognize the toll it has taken and remains ever present in the hearts of survivors and the heroes who tirelessly aided in recovery efforts.

Today, I ask you to take a moment to reflect on the importance of compassion, unity, and hope. As I remember 9/11, I am reminded of the strength Americans have when we come together as a community. May we never forget the lessons of that day and continue to honor the legacy of those who were lost by showing kindness, understanding, and love in our daily lives.