December Housing Market Trends: A Strong Finish to 2024 and Promising Outlook for 2025

As we wrapped up 2024, the Denver metro area housing market showcased notable trends and set the stage for an active start to 2025. Here’s a detailed look at the December housing market performance, comparing year-over-year and month-over-month data, along with insights into the rental market.

Year-Over-Year Insights

December brought encouraging signs for the housing market, with sellers introducing 9% more new listings compared to the same time last year. Buyers were equally active, closing on 13% more homes than in December 2023. The median closed price of homes climbed 6%, reflecting sustained price appreciation. Home shoppers executed contracts on 2,459 properties, a 9% increase from last year, although they took more time to finalize decisions, with homes spending a median of 41 days on the market—11 days longer than in December 2023.

Month-Over-Month Review

Seasonal slowdowns were evident in December compared to November. The number of new listings dropped by 31% as sellers pulled back during the holiday season. Buyer activity eased, with executed contracts declining by 16%, and home closings dipped slightly by 1%. Despite these seasonal shifts, the median closed price remained steady at $580,000, and homes closed at an average of 95.3% of their original list price, indicating ongoing flexibility in negotiations.

January Inventory Levels

The new year began with a significant inventory boost, as 6,888 homes were actively available for sale—46% more than January 2024. This expanded inventory offers buyers greater choices, particularly in Denver and Arapahoe counties, which together account for 43% of active listings. Detached single-family homes make up 67% of the available properties, with the remaining 33% consisting of condos and townhomes. Buyers now have a wider selection to consider as they enter the market in 2025.

Denver Metro Rental Market

The rental market in December reflected mixed activity. While 264 properties were leased through REcolorado’s MLS—a 6% decrease from December 2023—this marked a 13% increase from November. The median leased price inched up by less than 1% year-over-year, showing stability in rental costs. However, new rental listings fell significantly, down 32% from last year and 30% from the previous month, with only 260 properties added to the MLS. Active rental inventory also tightened, with 574 properties available at the time of data pull, a 19% decline from November.

What to Watch in 2025

As we move into 2025, the Denver metro area housing market appears well-positioned to offer expanded opportunities for buyers. With a larger pool of active listings and steady home prices, potential homeowners will benefit from greater choices, particularly in key counties like Denver and Arapahoe. Meanwhile, rental inventory constraints may continue to drive interest in purchasing, creating a dynamic and engaging market landscape. Stay tuned to REcolorado for the latest updates and insights as we navigate the year ahead together.