"2024 began with optimism; mortgage interest rates would stabilize and start a slow decline, inflation would subside - allowing the Federal Reserve to reduce the federal funds rate, and buyers and sellers would re-enter the market. In reality, we saw much of the same as in 2023.
Interest rates had a bumpy ride throughout the year. We finally saw the Federal Reserve ease the federal funds rate in the third and fourth quarters of the year. Mortgage rates responded temporarily with the first-rate drop but gained no benefit from the second and third reductions; this sends us into 2025 nearly where we began in 2024, with rates in the high six percent range. Elevated interest rates have lasted longer than anticipated, and historically low rates of three percent are no longer realistic moving forward."
Amanda Snitker
Chair of the DMAR Market Trends Committee | Denver REALTOR®
- LUXURY MARKET ($1,000,000+): "As 2025 begins the market is starting with more inventory, giving buyers continued negotiation power. Assuming interest rates remain relatively steady with slight decreases throughout the year, it's likely that most stats in 2025 will parallel those in 2024. For sellers, patience, timing and realistic expectations will be imperative. Buyers should adopt a similar mindset: be patient for the right house, know that summer month will bring more inventory and competition, and be realistic about the potential to negotiate on price and inspection items." Andrew Abrams, DMAR Market Trends Committee Member & Denver REALTOR®
- SIGNATURE MARKET ($750,000 - $999,999): "This time of the year, month-over-month numbers are influenced by normal yet significant seasonal patterns, which tend to be amplified during a presidential election year. With that in mind, year-over-year data provides a clearer picture as the year comes to a close. In the $750,000 to $999,999 market segment, the health and resilience remain strong, with positive indicators across the board. Year-over-year, pending transactions increased by 11.18 percent, closings jumped 41.27 percent and sales volume grew impressively by 42.02 percent. Even the close-price-to-list-price ratio and price per square foot statistics managed to end 2024 on a positive note." Michelle Schwinghammer, DMAR Market Trends Committee Member & Denver REALTOR®.
- PREMIER MARKET ($500,000 - $749,999) "You can't always get what you want... but you can negotiate to get closer. Lenders and buyers hoped for lower interest rates by December 2024, while sellers still dreamed of multiple offers and quick, top-dollar sales. But December's data tells a more balanced story. 2024 was the year we came to terms with higher mortgage rates, and December's data suggests that 2025 will bring even more opportunities and increased seller competition. Whether you're buying or selling, remember: negotiation isn't about getting everything - it's about getting what matters most. While others wait for rates or prices to drop, they miss the opportunity to build year-over-year equity." Keri Duffy, DMAR Market Trends Committee Member, and Denver REALTOR®.
*Remarks from Pages 14-15 of the December 2024 Market Trends Report from DMAR
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