Home price growth in metro Denver declines
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Home price growth in Denver has slowed significantly since spiking in 2021, new data shows.
Why it matters: The price slump gives buyers a better shot at entering Denver's once seemingly impenetrable market.
The big picture: You can thank mortgage rates for that. High mortgage rates suppress demand, which quashes home price growth.
By the numbers: The year-over-year change in median home sales across metro Denver was 3% in October, compared to more than 20% in 2021, according to new Redfin data.
The latest: Home value gains fell in November from the previous month — making this the best time of the year for buyers to look at homes, per the latest figures from the Denver Metro Association of Realtors.
- The median closing price of a single-family home in November was $639,000, down 1.7% from October's price of about $650,000.
What we're hearing: Mortgage rates are expected to remain elevated in 2025, though they could land somewhere closer to 6%, per a new Realtor.com forecast.
- Denver's current mortgage rate is hovering near 7%, per DMAR.
What's next: If rates and inventory don't change in 2025, expect home prices to stagnate.
- If rates fall sharply, home prices will likely shoot back up.