2024 Summary
Normally, I write a monthly update that aligns with the numbers in the graphic above. However, as 2024 wraps up, I will speak to what happened across 2024. The story of the year has been high interest rates shaping the real estate landscape for both buyers and sellers. Buyers were cautious, and sellers faced challenges pricing homes competitively.
We ended the year with 55,389 new listings in 2024, a significant 12.6% increase over 2023’s total of 49,589. Unfortunately, buyer demand grew by just 0.9% which resulted in a 38.6% year-over-year increase in active inventory. On the bright side, inventory levels were up a staggering 70% in the middle of the year, so they had actually declined significantly over the second half of the year.
Despite these challenges, home values showed resilience. The median closed price for 2024 was $590,000, a 2.1% increase from 2023’s median price. This growth was driven primarily by appreciation in the detached market while the attached market saw a decline of 1.9%.
Looking Ahead to 2025
Interest rates will continue to play the lead role in the real estate market next year. According to a CNET article citing projections from Fannie Mae, the National Association of Realtors (NAR), Wells Fargo, and the Mortgage Bankers Association, interest rates are expected to stay in the 6% range through 2025. NAR was the lone optimist projecting 5.8% by the end of 2025.
If interest rates remain steady and inventory continues to rise, I don’t expect to see more appreciation than the 2.1% that we saw last year. As always, you should buy a house based on your long-term goals and not to make a quick profit. That said, I’m surprised that we saw appreciation in 2024 given a 38.6% year over year increase in inventory, so the resilient Denver real estate market could surprise us!
