In order to build a successful real estate business, it’s critical to stay on top of the latest real estate trends. Real estate is a dynamic industry, and market trends are constantly evolving. In the second half of 2024, the Colorado real estate market saw significant changes that will likely continue impacting the industry into 2025.
At Colorado Real Estate School, our team of local real estate professionals are constantly monitoring the latest developments in the market – both in Denver and statewide. Below is an overview of some of the latest trends we’re seeing as 2025 approaches.
While we finally saw the Federal Reserve announce its first interest rate reduction in late 2024, rates still remain high overall. In addition, inflation has remained higher than the Fed’s 2% target, and it’s expected that this will cause Federal Reserve Chair Jerome Powell to announce a shift to a more gradual approach to rate cuts in 2025.
These high interest rates are keeping some buyers out of the market, but creating great opportunities for other buyers since there is less overall competition. Real estate agents representing buyers should advise their clients accordingly and look for potential opportunities to help their clients secure a better price for their home purchase due to the reduced competition for homes on the market.
This is a continuation of a trend that began in the second half of 2024. We’re seeing more listings on the market than in previous years, and this increase in inventory is creating more choices for buyers. This has spurred a shift to more of a balanced market after many years of a strong seller’s market throughout Colorado. While we haven’t shifted to a true buyer’s market yet, buyers are starting to experience relief from the bidding wars that marked real estate transactions since the beginning of the pandemic. In addition, this balanced market is allowing buyers to ask for more concessions in their offers.
We also saw the market slow down in late 2024 during the holiday season, similar to the way it performed before the pandemic. In addition, it’s expected that the market will heat up again in a few months and have a strong spring season. This behavior indicates a return to a more traditional seasonal market.
Real estate agents for buyers and sellers must understand these trends and advise their clients accordingly. For sellers with some flexibility regarding when they list their home for sale, holding off until the spring may help them maximize their return. For buyers, capitalizing on this seasonality and looking to buy during the winter months may help them secure a better price.
“Aspirational pricing” is no longer an effective tactic. Instead, real estate agents should prepare their seller clients for the reality that pricing their home competitively will be crucial if they want to sell it quickly and maximize their return. Sellers will also need to understand that houses are staying on the market for longer than in recent years, and they should remain patient if they don’t receive an offer the first week their home is listed.
For agents to deliver the best results for seller clients in this climate, they’ll need to look at comps very carefully and make sure they’re pricing homes right the first time.
With remote work solidly entrenched in our culture, we’re seeing a shift in the areas considered the most popular and desirable to live in. The demand for homes in Colorado’s suburban and mountain communities is expected to continue rising in 2025, as many families no longer need to be close to the city to minimize commuting time. In particular, areas such as Golden, Castle Rock, Evergreen and Conifer are receiving increased interest due to their ability to provide buyers with homes that have more space and better access to outdoor leisure activities.
In addition, the rise in remote work has resulted in the following home attributes being increasingly valued by buyers:
Colorado Springs is poised to be the most competitive real estate market in the state in 2025. In fact, realtor.com has named Colorado Springs the top real estate market in the country for 2025 with a projected 27.1% year-over-year increase in home sales. There are several reasons why Colorado Springs has become such an up-and-coming real estate market:
New real estate agents who are unsure of where to establish their new business may want to consider Colorado Springs since it will offer tremendous growth potential over the next few years.
Some of the technology that will drive the real estate purchase process in 2025 include:
The growing emphasis on sustainability throughout society is being felt in the real estate market as well. We’re seeing increasing demand for homes with energy efficient features such as:
Many buyers are willing to pay a premium for eco-friendly home features, and agents who understand how these attributes are impacting the market will be able to provide their clients with better service.
With home prices and interest rates remaining high, many families are finding that they’ve been priced out of homeownership. This creates optimal conditions for a strong rental market. Real estate professionals involved in property management should expect business to thrive in 2025. In addition, rental property investors can find lucrative opportunities by purchasing properties in growing markets such as Colorado Springs or Greeley, where rental demand is high and there is still potential for long-term appreciation in home values.
If you’re considering a career in real estate, Colorado Real Estate School can help you build the foundation for success in your new endeavor. Our online real estate courses contain all the critical information you’ll need to pass your real estate exam, and our online format allows you to complete your coursework at the time and place that is most convenient for your busy schedule.
All our courses are developed and taught by local, licensed real estate professionals. This ensures that you’ll receive the most up-to-date information regarding the latest real estate trends impacting the Colorado market, packed with insights from seasoned real estate agents working in the field. Our courses are enhanced by our exclusive VideoConnect Success Learning System™ containing the largest library of instructor-led video content available. These video lessons recreate an authentic classroom environment and provides an engaging experience that helps you optimize your learning.
At Colorado Real Estate School, all our courses are backed up with our TruSupport Pass Guarantee™ providing you with the support you need to pass your exam and get your license. If you don’t pass your exam on the first try, you’ll receive extended access to all course materials, and you’ll work with one of our instructors who will develop a customized study plan for you that emphasizes the subjects and concepts that you struggled with on the exam. This added support will set you up for success when you retake the exam.
Contact us today to learn more about our online real estate courses.
