January 2026 Your Castle Real Estate Newsletter

Closing Out 2025: A Familiar Market Finds Its Footing

As we close out 2025 and step into a new year, the Denver Metro housing market feels familiar. In many ways, this year closely mirrored both 2023 and 2024—defined less by dramatic swings and more by consistency. Activity followed a well-established seasonal pattern: peaking in the spring, tapering through summer, dipping slightly in August, a modest uptick in September, and then declining beginning in October, with the steepest drop-off occurring between Halloween and New Year’s Eve. Throughout the year, affordability, ownership costs, and mortgage rates remained the dominant forces shaping buyer and seller behavior.

December’s numbers reflect that expected year-end pause. Active listings at month’s end totaled 7,607, down 27.6% from November, while 1,775 new listings came to market. Many homeowners chose to step back during the holidays, planning to revisit selling once the calendar turns. Historically, active listings at month’s end decline an average of 18.4% from November to December, making this year’s decrease steeper than the long-term norm, yet still well within the boundaries of seasonal behavior. For context, the historical average number of active December listings (1985–2024) is 11,839, with a record high of 24,603 in 2007 and a record low of 1,477 in 2021—placing December’s 7,607 active listings at month’s end comfortably within a normalized range.

With inventory remaining elevated relative to recent years, homes continued to take longer to sell. In December, average Days in MLS increased to 67, with a median of 45 days. Buyers remain active and engaged, touring homes and watching the market closely, but the depth of available inventory has clearly extended decision timelines. This slower pace has been a defining feature of the market for much of the past three years and continues to influence how transactions unfold.

Sales activity softened alongside the season. Pending sales totaled 2,226, while 3,101 homes closed, reflecting the typical holiday slowdown as travel, weather, and end-of-year obligations take priority. Even so, demand hasn’t disappeared—it has shifted. Many first-time buyers are taking a longer-term approach, beginning the planning process now with the intention of purchasing in mid-2026. For many, the quieter months are less about immediate action and more about preparation.

Pricing remained steady as the year ended. The average close price ended December at $678,718, and the median close price came in at $575,000, showing modest declines both month-over-month and year-over-year. Homes continued to sell close to list price, with a 98.25% close-price-to-list-price ratio, reinforcing that values are holding despite longer timelines and shifting buyer behavior.

ALDI Expands into the Front Range

As we close out 2025 and look ahead to what’s next, it’s not just the housing market that feels steady and familiar—Colorado’s growth story continues to unfold in ways that directly impact daily life. One of the more notable developments heading into 2026 is ALDI’s announcement that it will officially enter Colorado, with plans to open more than 50 stores across the Denver and Colorado Springs markets over the next few years. For many residents, this signals more than a new grocery option; it reflects how population growth, affordability concerns, and lifestyle priorities continue to shape the Front Range.

ALDI’s expansion is part of a much larger national plan. In celebration of its 50th year in the U.S., the grocer announced it will open more than 180 new stores across 31 states in 2026 alone, backed by a $9 billion investment through 2028. Colorado’s inclusion highlights the state’s growing appeal, particularly in metro areas like Denver and Colorado Springs where residents continue to seek value, convenience, and efficiency in everyday expenses—especially as housing and ownership costs remain top of mind.

For both Denver and Colorado Springs, the planned rollout is expected to bring not only new shopping options, but also local economic impact. ALDI has announced plans for a Colorado-based distribution center in Aurora later this decade, supporting long-term operations across the region and creating new jobs. As these stores open, they’ll serve a broad range of neighborhoods along the Front Range.

Beyond brick-and-mortar expansion, ALDI is also modernizing how customers shop. A redesigned website launching in early 2026 will introduce easier online ordering, personalized recommendations, and improved curbside and delivery options. As more households balance busy schedules with rising costs, these kinds of everyday conveniences continue to play a role in how communities evolve—quietly shaping where people choose to live, shop, and spend their time.

ALDI’s move into the state reflects a broader sense of momentum without urgency. Measured and intentional growth is happening. For residents from Colorado Springs to Denver, it’s another reminder that big changes don’t always arrive overnight, they often show up in practical ways—one neighborhood, one grocery run, and one new year at a time.

For Sellers: The end of 2025 underscored the importance of strategy. Many homeowners opted to temporarily withdraw their listings late in the year, planning to return in early 2026. With that anticipated return of inventory—combined with the traditional increase seen toward the end of the first quarter—sellers should be prepared for a more competitive environment. Pricing accurately, preparing homes thoughtfully, and aligning expectations with longer timelines will be essential as the market continues along its steady path.

For Buyers: Today’s market continues to reward preparation and patience. Inventory remains available, negotiation is part of the process, and homes are spending more time on the market. Mortgage rates have come down from recent highs, and activity has begun to pick up as the new year gets underway. Buyers who are prepared and stay engaged often find themselves better positioned as competition increases later in the year.

As we move into 2026, the Denver Metro housing market feels consistent. Prices have stabilized, inventory has normalized, and both buyers and sellers are operating with clearer expectations. Rates are down, momentum is building, and the market enters the new year with steadiness and direction.