The Colorado housing market in January 2025 presents a complex landscape, characterized by a mix of rising and falling metrics. The Median Sales Price has increased by 1.6% year-over-year, reaching $607,300. This modest rise indicates a steady demand for homes despite broader market fluctuations.

Conversely, the Median List Price has seen a significant decline of 16.4% year-over-year, now standing at $627,100. This drop suggests that sellers may be adjusting their expectations in response to changing market conditions, potentially influenced by increased inventory and longer market times.

The median Price Per Square Foot has decreased slightly by 1.1% to $268, while the Median List Price per square foot has risen by 4.8% to $328. This divergence indicates a potential shift in buyer preferences or a change in the types of properties being listed.

In terms of sales activity, the number of Homes Sold has increased by 8.3% year-over-year, totaling 4,169 units. However, Pending Sales have decreased by 6.3%, suggesting a potential slowdown in future transactions. New Listings have surged by 19.2%, reaching 7,974, contributing to a 26.1% increase in inventory, now at 18,891 homes.

The Months of Supply have risen dramatically by 60% to 4.5 months, indicating a more balanced market compared to the previous year. This increase in supply, coupled with a Median Days on Market of 66 days (up 11% year-over-year), suggests that buyers have more options and time to make purchasing decisions.

The average sale to list ratio remains stable at 98%, with no significant year-over-year change. The percentage of Homes Sold above list price has slightly decreased by 0.8% to 17%, reflecting a more competitive market environment. Price Drops have increased by 4.5%, affecting 28.2% of listings, while the percentage of homes going off-market in two weeks has decreased by 1.7% to 28.8%.

Overall, the Colorado housing market in January 2025 is experiencing a period of adjustment, with increased inventory and longer market times balancing out the previous year's rapid price growth. Buyers may find more opportunities as sellers adjust to the evolving market dynamics.