February 2025 | Market Update

Northern Colorado Real Estate Market Analysis – February 2025

With a new year, the trend of the market takes several months to begin to take shape. With a brisk open to the year, we’re beginning to see signs of what the rest of the year may hold for the real estate market in 2025. Early buyer confidence was met with rising interest rates that have now begun to decline, creating new market interest. Recent declines in the stock market have renewed demand for hard goods, namely real estate. Let’s dive into the latest across the region:

Homes for Sale Surge Across All Markets

Inventory has expanded dramatically across Northern Colorado, offering buyers more options.

• Denver Metro saw one of the largest increases in available inventory, rising 50% year over year, from 4,511 homes to 6,752.
• Longmont and Boulder Valley both saw 50% and 36% increases, respectively.
• Loveland experienced a 54% increase, while Estes Park surged by an impressive 72%, signaling a major inventory expansion in the foothill market.
• Even Fort Collins, a steady market, saw a 25% jump in homes for sale.

This increasing inventory suggests a shift from a seller-dominated market to a more balanced environment where buyers have more choices and negotiation power.

Sales Trends: Some Cities See Gains, Others Decline

While inventory is increasing, sales figures show a mixed picture across the region:

• Estes Park led the region in sales growth, jumping 22% year over year.
• Loveland followed closely with a 19% increase in sales, suggesting strong demand despite rising inventory.
• Fort Collins showed healthy sales growth at 12%, reinforcing its market resilience.
• On the flip side, Boulder saw a notable 28% decline in sold listings, indicating softening demand in the high-end sector.
• Berthoud and Timnath experienced declines of 10% and 33%, respectively, showing potential cooling in these emerging markets.

Market Balance: Months of Inventory Expands

The months of inventory—a key indicator of market balance—has risen significantly:

• Estes Park saw the most drastic increase, with inventory rising 77% from 3.0 to 5.3 months, making it a clear buyer’s market.
• Loveland saw a 60% increase in inventory, moving from 1.5 to 2.4 months.
• Boulder, Longmont, and Berthoud all saw inventory rise by over 39%, reflecting a slowdown in demand relative to supply.
• Denver Metro remains relatively stable at 2.34 months of supply, still favoring sellers but trending toward a more neutral market.

Average Sales Prices Show Resilience

Despite fluctuating inventory and sales numbers, prices remained stable or increased in most areas:

• Evergreen saw the largest year-over-year price increase at 11%, rising to $1,248,470 for single-family homes.
• Loveland posted a solid 6% increase, climbing to $629,119.
• Fort Collins, Berthoud, and Timnath all saw modest price gains of around 2%.
• Boulder was the only market to see a slight decline (-1%), suggesting potential softening at the high end.
• Condo and townhome prices varied, with Berthoud seeing a 12% decline while Estes Park posted a 6% increase.

Price, Condition, and Preparation Are More Important Than Ever

With increased inventory and mixed sales trends, sellers must be highly strategic in their pricing, home preparation, and market positioning. Some homes are receiving multiple offers, while others linger on the market, leading to negotiation opportunities for buyers.

Buyers should be ready to evaluate each property carefully, especially as some markets shift toward buyer-friendly conditions. Working with a knowledgeable real estate team—including a high-quality agent, an experienced lender, and marketing professionals—will be essential for success in this evolving market.

Where the Market Is Headed

The Northern Colorado market remains structurally strong but is clearly entering a period of adjustment. The combination of increasing inventory, stabilizing prices, and varied sales activity suggests a more balanced and sustainable market ahead.

For investors and homebuyers tracking market trends, the data suggests opportunities for strategic acquisitions, particularly in areas where inventory is rising and competition is easing.

In short, Northern Colorado's residential real estate market is evolving from rapid acceleration to a more measured, sustainable expansion. Buyers and sellers alike must stay informed and adapt to this changing landscape.