March 2025 marks five years since COVID-19 first impacted Colorado, a period that reshaped priorities, resilience and the definition of essential needs. Among the most significant shifts was the sudden demand for change—whether it was a home office, space for remote learning or a yard for children and pets as schools and parks shut down. This demand, combined with historically low interest rates, ignited a real estate surge that lasted 24 months. The market reached its peak in April 2022, when the median sale price in the Denver Metro hit $616,500—a 38.5 percent increase from March 2020.
“Five years later, the Denver Metro is experiencing the ‘after’—a market returning to balance, though shaped by high interest rates,” said Amanda Snitker, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “March’s median sale price in the Denver Metro was $599,000, down 3.9 percent from the peak. This market stabilization has come with lower buyer demand, higher inventory levels and stagnating prices. However, primary residential homes remain a long-term investment, with the market showing a 6.92 percent annual appreciation over five years—consistent with historical averages.”
Higher interest rates and affordability challenges have had the most significant impact on the market shift. In 2020, the average interest rate for a 30-year fixed mortgage was around three percent and remained in that range until the spring of 2022, when rates surged to about seven percent by year-end—where they have largely remained. This sharp increase in borrowing costs has slowed buyer activity, even as inventory has grown.
The first quarter of 2020 is the pre-pandemic benchmark, reflecting market conditions before COVID-driven demand accelerated activity. In the first quarter of this year, 15,529 new listings have entered the market, compared to just 6,666 in the first quarter of 2020. The 2020 surge in buyer demand began amid already-low supply. As inventory has increased, prices have stagnated. In the first quarter of 2020, 12,065 properties were sold; in the first quarter of this year, only 8,697 properties were sold—a 27.9 percent decline—highlighting that the market remains less active than it was before the pandemic.
Commented Snitker, “The good news for buyers in this current market is that the pricing rebalance has allowed the drastic value jump to even out. Mortgage rates remain impactful on affordability; however, the increase in supply has provided more options to choose from and increased negotiating options with sellers. In reality, sellers are in a different position than in 2020-2022; buyers are pickier and looking for homes that have been well-maintained, require minimal updating and, of course, are priced competitively for the current market conditions. Buyers don't have the same level of urgency as during the pandemic years; sellers need to create that urgency by presenting a beautiful home at an attractive price.”
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