The Colorado real estate market continues to evolve with distinctive trends emerging across different property types and locations. Whether you’re an investor considering your next move or a potential homebuyer trying to time the market, understanding the current landscape is essential for making informed decisions in these dynamic markets.

Episode Overview

In this information-packed market update, Chris Lopez and the team dive into the February 2025 real estate trends for both Denver and Colorado Springs. The discussion covers single-family and attached home prices, inventory levels, rental market conditions, and analysis of a controversial market forecast predicting Colorado Springs as the hottest market in 2025. The panel also examines how recent government spending cuts might impact local housing markets and explores opportunities in the office-to-residential conversion space.

https://youtu.be/5fwSqwyWQHU

Timestamps

(00:00) Intro
(03:33) Colorado Springs Market Performance Update
(06:26) Colorado Springs Hottest 2025 Market Prediction
(11:33) Government Changes Impact on Regional Markets
(20:17) Denver Housing Inventory Historical Context
(27:51) Condo Market Challenges and Financing Issues
(39:30) Office to Residential Conversion Project
(45:17) Multifamily Investment Opportunities and Strategies

Colorado Springs Market: Stability Amidst Bold Predictions

Despite a controversial forecast from Realtor.com naming Colorado Springs as potentially the hottest housing market in 2025, current data shows more modest but stable growth. Jenny Bayless, the team’s Colorado Springs expert, provides context around these predictions and the current market reality.

“February reports are showing that the median sales price is down month over month, almost 2%, but it’s still up year over year, almost 4%,” explains Jenny, highlighting the market’s resilience despite short-term fluctuations.

• 
  
• Single-family homes continue to appreciate (up ~4% year-over-year) while condos and townhomes show softness (down ~6% year-over-year)
  
• The forecast predicting 27.1% growth in sales volume and 12.7% price appreciation appears overly optimistic based on current market performance
  

The panel expresses healthy skepticism about Realtor.com’s bold prediction, noting that while Colorado Springs has excellent long-term potential, the projected numbers seem disconnected from current market realities. As Jenny states: “I would welcome it, but I just find it very hard to see this happening.”

Denver Market: Growing Inventory but Still Below Historical Averages

The Denver market shows significant year-over-year inventory growth, though prices remain resilient, particularly for single-family homes. The discussion reveals how current inventory levels compare to historical data and what this means for buyers and sellers.

“The report said the increase in active listings from January to February this year was the third largest percentage increase on record at 11%,” Chris notes, highlighting the rapid inventory growth.

• 
  
• Active listings increased to 8,554 (up 55% year-over-year and 11% month-over-month)
  
• Despite these increases, current inventory still sits below the historical average of 12,500 listings since 1985
  
• Single-family home prices continue to rise modestly (median up 2.5% year-over-year)
  

This context helps explain why the market still feels competitive in many segments despite growing inventory levels. The historical perspective provides valuable framing for understanding Denver’s current market position.

HOAs, Financing, and Insurance Issues

A significant portion of the discussion focused on the struggles within the condo market, particularly related to financing challenges and increasing HOA fees. These issues are creating barriers for potential buyers and depressing values in certain segments.

“Communities are in need of large critical repairs because of hail storms and wind storms over the last three years,” Chris shares from an email from local lender Lonnie Glessner, highlighting one of the major issues affecting condo communities.

• 
  
• Insurance claims and non-warrantable status are making many condos difficult or impossible to finance through traditional channels
  
• HOA fees have increased dramatically in some communities (one example cited showed fees nearly doubling to $700/month)
  
• Special assessments for repairs create additional financial burdens for owners
  

Troy, who is a lending expert, explains that many condo complexes have fallen out of warrantability due to insufficient reserves or insurance issues, significantly limiting the pool of potential buyers who can obtain financing.

Rental Market Trends and Conversion Opportunities

The rental market in Denver is experiencing downward pressure, with rents declining across most segments. The discussion also touched on an exciting new project converting office space to affordable housing.

“Denver had the highest increase over the past 12 months… We’re up to 67% of listings in Denver offering some kind of concession,” Brandon shares, highlighting the competitive rental market dynamics.

• 
  
• Overall rents are down approximately 5% year-over-year across the Denver market
  
• Two-thirds of rental listings are now offering concessions to attract tenants
  
• Shea Properties received $29 million in bonds for an office-to-affordable housing conversion project near I-25 and I-225
  

This conversion project represents an interesting potential trend as cities look to address both the surplus of office space and shortage of affordable housing. The 143-unit project will be 100% income-restricted, offering studio to four-bedroom options in a prime location.

Final Thoughts

The February 2025 market data reveals a nuanced picture across Colorado’s real estate landscape. While single-family homes continue to show resilience with modest appreciation, condos face significant headwinds from HOA and financing challenges. Rental markets are experiencing competitive pressures, leading to declining rents and increased concessions. For investors, these dynamics create both challenges and opportunities depending on property type and investment strategy.

To stay informed about these evolving Colorado real estate market trends and position yourself to make better investment decisions, tune in to the full episode for additional insights and analysis.

Links from Podcast

Keyrenter Property Management Denver: https://keyrenterdenver.com/

Nova Home Loans: https://troyhowell.novahomeloans.com

Connect with our Guests:

Brandon Scholten: brandon@keyrenterdenver.com

Troy Howell: troy.howell@novahomeloans.com

• 
  
• LinkedIn: Troy Howell
  

Jeff White: Jeff@envisionrea.com

• 
  
• LinkedIn: Jeff White
  

Jenny Bayless: jenny@envisionrea.com

• 
  
• Denver February 2025 Real Estate Market Updates
  
• Colorado Springs & Pueblo February 2025 Real Estate Market Updates
  

Who is Keyrenter?

Keyrenter Property Management Denver provides rental solutions for homeowners and real estate investors in the metro area who are interested in transforming their properties into passive income. It offers various services, from property marketing and thorough applicant screening to tenant placement and 24/7 maintenance services. Keyrenter Denver’s team of experts can take the clients’ burden of managing their rental off their hands so they can get back to what matters to them.

Who is Nova Home Loans?

For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today!

NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO