Spring 2025 is looking to be a great time for homebuyers looking to buy that first home or move up or into our Denver Metro home market. We have seen a steadily increasing number of homes entering the market over the past 3 years leading to an increasing level of inventory. Demand from buyers over the same 3-year period has been flat or waning further contributing to building inventory levels.
Home prices have been moderating over the last 3 years with year-over-year price increases that are below historical norms. A healthy normal market will generally see year-over-year price appreciation between 3 – 5%. Last year we saw price appreciation of 2.08% metropolitan wide.
Mortgage interest rates have also stabilized and seem to be moving back-and-forth in the upper 6% range. While we do not see any immediate significant downward movement in rates there is projections that rates could be down around 6% by the end of 2025. Current and possible future rates by year end are well within historic rates. The average rate since 1971 is 7.76% percent with the all-time high reported in October 1981 with a rate of 18.36% and lowest reported rate of 2.72% reported in November 2020.
So, with an abundance of homes to select from, in respect to recently historic low levels of inventory, coupled with a growing acceptance of mortgage rates in the range of what is historically “average” it will be a great time for buyers to buy in 2025. As the expectation that sellers will continue to bring their homes to a growing market of inventory it could spell an opportunity for buyers this spring. While not a buyers market in terms of our month-supply of inventory, the conditions are there for a savvy buyer to reap the benefits of having their next home to enjoy by this summer.
Contact me to learn more and to strategize your plan and position yourself for success in 2025! Be in your home this spring and enjoy it while your friends are battling the frenzy of the summer market.
