Market Update: April ‘25

Mountain-Metro/ Foothills Real Estate Trend Update

Inventory is back on the rise! New listings are hitting the market at an accelerating pace, while sales remain steady. After years of low inventory, the situation is now healthy and balanced. Although we continue to see seasonal fluctuations in new listings, contracts, and closings, one trend from the past year stands out: active listings are increasing at a higher rate than closings. As a result, both months of inventory and days on market are steadily increasing.

Currently, the overall Mountain Metro Market has about three months of inventory—up from 2.1 months just a month ago and significantly higher than two years ago. Notably, this year’s seasonal low in December and January still exceeded the inventory peak seen in 2021. Over the last five years, our rolling 12-month average of monthly supply has risen from under one month to nearly 3.5 months.

It’s important to clarify that this does not indicate a fully buyers' market, nor are prices falling. In fact, both the median and average sales prices in the entire foothills market have increased by over 3% year over year, now sitting at $720,000 and $840,000 respectively. In the Conifer-Evergreen area, the average price has soared by nearly 10%, reaching $1.17 million.

Many agents in the region agree that while the market is bustling—with numerous showings, offers, and even multiple offers—sales (closings) are lagging behind this activity. We are witnessing multiple offers below asking price, deals that don't reach agreement, and some that fall apart due to inspection or insurance issues. Negotiations are becoming more complex and take longer to finalize. Currently, the number of price decreases in the market is on par with the number of new listings and pendings, while over 10% of pending listings are returning to the market.

These trends likely stem from the rising cost of living, especially housing, which is increasing faster than wages. Buyers face challenges with higher interest rates and insurance costs, while sellers need to achieve "top dollar" for their existing homes to afford their next purchase. Many sellers are transitioning from homes with low interest rates to new properties at higher rates, potentially leading to less value for a larger payment.

The market pressures are particularly pronounced in the affordable housing segment. While the foothills market offers a mix of affordable and luxury options, the condo and townhome market is especially stressed. Issues with condo insurance and a lack of new affordable housing have contributed to a 50% increase in inventory, leading to noticeable price drops. Conversely, the luxury market (properties over $2 million) has seen a rise in active listings but a decrease in days on market over the past year. This segment is thriving as buyers are generally cash buyers and are not affected by higher interest rates, with pending listings in March nearly doubling from a year ago, indicating a robust and growing market since January 2024.

As always, if you’re seeking tailored advice, don’t hesitate to reach out! Who you work with matters— I’d be honored to help!