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As 2024 draws to a close, we reflect on a year marked by fluctuations and adjustments within the Denver Metro real estate market. Despite early optimism for decreasing mortgage rates and easing inflation, the market experienced a rollercoaster ride influenced by economic events and policy decisions. Here’s how these dynamics played out in December and what we can anticipate as we step into 2025.
December Market Overview:
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Active Listings: Ended the year at 6,888, a significant drop of 26.02% from November but still up 38.56% compared to December last year, showing increased availability but a seasonal slowdown in listings.
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New Listings: Decreased sharply by 32.97% to 1,840, reflective of typical end-of-year market behavior combined with ongoing economic uncertainties.
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Pending Sales: Also saw a reduction, down 15.59% to 2,459, as buyers and sellers paused their activities amidst the holiday season and year-end reflections.
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Closed Sales: Slightly down by 0.89% from November to 3,107, closing the year with an overall increase of 13.15% compared to last December.
The median days on MLS rose to 40 days, up significantly from November, indicating properties are taking longer to sell as buyers take a more measured approach in the current economic climate.
Year-Over-Year Insights:
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Detached Homes: Continued to show strength with active listings up 32.27% for the year. Closed sales increased by 22.18% compared to last December, reflecting sustained demand despite the broader market challenges.
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Attached Homes: Faced tougher conditions with a significant year-over-year increase in active listings and a decrease in closed sales, indicating a shift in buyer preferences or challenges in affordability due to rising HOA costs.
Economic Influences: The end of 2024 was shaped by key economic reports and a critical Federal Reserve decision, which saw the federal funds rate decrease in the latter half of the year. However, mortgage rates didn’t see a sustained benefit from these cuts, closing the year in the high six percent range. This stabilization at a higher rate level than anticipated has required buyers and sellers to adjust their expectations and strategies accordingly.
Market Trends and 2025 Outlook: Looking ahead to 2025, the market is expected to continue adjusting to the new normal of higher interest rates and economic shifts. The inventory levels, while lower than in November, remain elevated compared to the past few years, providing opportunities for buyers. Sellers may need to adjust to longer selling times and be open to negotiations to align with buyer expectations.
As we enter a new year, the market’s resilience and the adaptability of both buyers and sellers will be key. Economic and political changes will continue to influence market dynamics, and staying informed will be crucial for successful real estate decisions.
Navigating the Market: Whether planning to buy or sell in 2025, understanding the nuanced changes in market conditions is essential. As your real estate advisor, I’m here to provide you with the latest data and insights to help you make informed decisions.
Contact Me for More Insights: If you’re looking to navigate the complexities of the real estate market, whether buying, selling, or just staying informed, don’t hesitate to reach out.
Contact Me: LaDawn Sperling, Real Estate Professional 303.710.5817 | ladawn.sperling@cbrealty.com
