2025 Real Estate Market Recap for Summit & Park County

Nationally, we saw the highest levels of inventory since pre-2020. Appreciation rates cooled across the country with some states hit by price drops while most still saw modest growth. 

 

The biggest issue across the country was and continues to be affordability.  Many current homeowners feel locked into their homes by sub 4%, even sub 3% interest rates. While buyers' purchasing power was limited by 6-7% interest rates.  It was a market made of buyers with reduced buying power and sellers who didn't want to sell because they would have to spend so much more to buy the next home.

 

The good news is that the number of homes sold picked at speed at the end of the year due to interest rates steadily dropping over the course of the year, ending at 5.99, finally back under the magical 6% mark experts have predicted will bring more buyers to the market, including those who have homes to sell first. 

 

If you look at the map above you'll see that Colorado is one of the areas that saw a slight drop in home values.  Our area median home values fell by around 4%, more than the state or national average. Some areas were hit harder than others and others like single family homes over $1M held mostly steady.

 

For the most part the areas and types of properties were affected the most followed the trends of the last few years. A competitive market in 2020-2022 lead buyers to purchase properties that historically had lower demand. As that demand has continued to diminish  those parts of the market continued to see price corrections. Thoseareas include but aren't limited to Park County, Wildernest, and smaller condos, especially if those condos can't get short term rental licenses currently.   

 

 

 

BUT more homes are selling compared to the last few years. The number of homes sold and the total sales volume in 2025 in Summit County was higher than 2023 or 2024. 

 

Take Away: The drop in home values in the mountain markets was due to the number of listings still outpacing the number of buyers looking. You can see this clearly in the chart below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buyers are entering 2026 with more purchasing power, due to lower interest rates, than they had for most of 2025.  A loan of $500K costs $394 less per month than it did at the beginning of 2025.  This will mean more buyers entering the market AND more sellers listing their homes as they finally feel ready for their next move after waiting for the last few years.

 

Inventory is expected to be about 10% higher than last year with more of the homeowners who have been waiting to sell finally taking the leap because life events make it hard to keeping holding out and lower interest rates reducing the pain of buying again. 

BUT don't expect a buyer rush like 2021 and definitely don't expect a rush of listings to bring home values CRASHING down.  Over ⅔ of homeowners have paid off at least 50% of their mortgage, which means the odds of a market crash caused by distressed sales is still extremely low.  This number is even higher in the mountain markets with 41% of home purchases in 2025 done in cash. 

 

Interest rates are also expected to remain relatively steady. According to predictions from Fannie Mae, MBA, and Wells Fargo, interest rates will hover between 5.9 and 6.2.

 

Realtor.com put it best “2026 will be steadier [than 2025] but not off to the races” 

“We anticipate affordability will improve modestly, on average, in 2026. This results from our expectations of slightly lower interest rates, only modest increases in home prices and a more balanced market than in recent years.”- Jake Krimmel Senior Economist, Realtor.com

 

A steadier market can be an opportunity for both buyers and sellers BUT it also means that to win in 2026 you need to be intentional, whichever side of the deal you are on. 

 

As a buyer, you will want to be ready to jump! Being ready to act quickly will mean you are ready to lock in a lower interest rate when they dip and can snag the right property when it comes available. Talk to a lender early so all of your paperwork is in order. And get set up on an MLS so you can start watching the market now.  There will be more listings to pick from but the most desirable listing will still move quickly. 

 

Listings will still be able to sell IF you are strategic about how you list.   Well maintained homes, that photograph well, and are priced to sell may still be able to garner multiple offers.  But if you miss on any of those points you'll leave money on the table because buyers will have a more power.  With higher levels of inventory and still higher than wanted interest rates buyers will feel that they can be picky and move onto the next home if yours isn't just right.  Gone are the days of taking photos without staging and listing for what you want. You'll need to make your home look it's absolute best and price it based on what the market dictates.