Denver Metro Area Post-Election Real Estate Market Update
By David Schlichter
The residential real estate market picked up modestly in the month of October, likely as a result of a temporary dip in mortgage rates, with sales up 5.3% month-over-month and 12.5% year-over-year. The long-term trend, though, is that the market nationally and locally is moving much more slowly than it has in a very long time as a result of interest rates that are substantially higher than where they had been during the pandemic and prices that have remained high in spite of them.
Interest rates have ticked back up in the last few weeks, subsequent to the Presidential election, and in spite of the Fed cutting the Federal Funds Rate. How much (and if) mortgage rates fall over the course of the next 12 months remains to be seen and will hinge upon economic conditions and the impact of the policies of the incoming administration.
We do expect conditions to improve for sellers in the new year as a result of the combination of the ordinary seasonality of the market, the fact that many prospective buyers have deferred buying longer than they were expecting to, and the fact that the uncertainty of the election is now behind us (in 9 of the last 11 election cycles, the number of home sales rose the year immediately following a Presidential election, and prices tend to also rise in the year following a presidential election).
The biggest driver of how competitive the market will be in the coming months, though, will be mortgage rates. The higher they are, the slower the market will be. The lower they are, the busier the market will be.
If you're thinking about buying or selling a home in 2025, contact us today so we can make a customized plan to help you achieve your real estate goals.
Denver Metro Area: October Market Stats
Included Counties: Adams | Arapahoe | Broomfield | Denver | Douglas | Jefferson
Source: REColorado and ShowingTime, residential, all property types, October 2023 vs. October 2024, September 2024 vs. October 2024 [accessed 11/05/2024].
