Denver Ranks Low Nationally…So Why Is Demand Rising?

1 - The Fed Cut Rates by 0.25% for the 3rd Time in 2025.

The Fed also announced it will begin buying short-term treasuries. As we approach the latter half of December, mortgage rates are now currently being reported as about 6.27%.

2 - The Denver-Lakewood-Aurora Market Ranked 250 of 300 on realtor.com's “Hotness Scale" in October…and that ain't great.

Considered “slightly cool” but on the cooling trend compared to last year, Denver ranked in the bottom 17% amongst the country's hottest metro markets. However, the market is considered to be “slightly heating up” compared to months previous.

“Median days on market is 62.5 days, with inventory moving 21% 'Slower' than last year and 0 days 'Faster' than the US overall. Properties in the area receive an average number of views 0.6 times 'lower' than the US average.”

3 - December Housing Demand Near 3-Year High

18 weeks of mortgage rates below 6.64% have delivered double-digit year-over-year growth. Interest rates are hovering much closer to 6.25% and have been for much of the year. More importantly, and what few seem to be talking about, is that the effective rate that many buyers are obtaining through buy-downs are closer to the low 5s. 

Bottom Line

December buyer demand is near a three-year high, even as Denver works through elevated days on market and slower inventory movement. In short, local conditions remain selective and price-sensitive—but the demand floor is rising, and momentum is quietly rebuilding all in time for the new year.

January should be interesting. The question going forward is when will the real estate engine turn on and start revving up towards spring season.