Apr 25 - Level Playing Field in Denver?

Five Years Later: How the Pandemic Reshaped Denver Real Estate

March 2020 marked the beginning of a global shift that reshaped nearly every aspect of life—including real estate. Now, five years later, we have the full picture: the before, the during, and the after of the pandemic’s impact on housing. From evolving buyer preferences to fluctuating interest rates, the market has transformed dramatically. As we look back, three key factors stand out: health and quality-of-life concerns, affordability, and demand.

Before the pandemic, Denver’s real estate market in 2019 was already competitive, though far more predictable. Interest rates for a 30-year fixed mortgage averaged around 4%, and while prices were steadily rising, affordability remained within reach for many buyers. Home preferences were also different—proximity to work and entertainment hubs was a top priority, and open-concept living spaces were still trending. Buyers were primarily focused on financial investment and lifestyle convenience.

Everything changed in March 2020 when the World Health Organization declared COVID-19 a global pandemic. With stay-at-home orders in place, the meaning of "home" took on a whole new significance. Demand for larger homes with dedicated office space and outdoor areas surged. Interest rates dropped to historic lows, hovering around 3%, which fueled an intense wave of buyer activity. The market became hyper-competitive, with homes selling in days, often above asking price and with waived contingencies. This frenzy continued until spring 2022, when mortgage rates began their steep climb. By the end of that year, rates had jumped to around 7%, abruptly cooling demand and shifting market dynamics once again.

By May 2023, the World Health Organization and the U.S. government officially declared the end of the pandemic, and with it came a new phase for real estate. While the chaos of the prior years had settled, high mortgage rates continued to impact affordability. Buyer activity slowed, inventory levels rose, and home prices plateaued after years of rapid appreciation. However, looking at the five-year picture, Denver real estate still experienced an average annual appreciation of 6.92%—a steady long-term growth rate. For buyers, the market shift brought much-needed relief, with more options, better negotiating power, and fewer bidding wars.

Today's real estate landscape reflects the full cycle of the past five years. The extreme highs and lows have evened out, creating a more balanced market. While affordability remains a challenge due to mortgage rates, increased supply has helped stabilize prices. For those looking to buy or sell, understanding how we got here provides valuable insight into making informed real estate decisions moving forward.

Five Years Later: Luxury Still Reigns Supreme in the Mountains

As we reflect on how real estate has evolved since March 2020, it’s clear that our definition of “home” has expanded—sometimes dramatically. Enter 181 S Fairway Drive in Beaver Creek, the largest private residence in both Vail and Beaver Creek. Set on 1.5 acres overlooking the fairways and peaks, this estate is a masterclass in scale, design, and alpine prestige.

Originally designed in 1985 by architect Charles Sink, the home has a legacy that spans decades of thoughtful design. The grand entry makes an unforgettable first impression with granite floors, soaring ceilings, and panoramic mountain views that flood through towering windows. Every room speaks to craftsmanship and intention, with luxe materials like solid cherry wood, Kentucky and burled walnut, and a striking Brazilian cherry parquet floor that grounds the living room.

The primary suite takes indulgence to the next level: “a luxurious retreat with marble flooring, two private lounge areas, and expansive cherry wood closets and wardrobe areas.” And for the ultimate flex? A private staircase leading directly to the indoor pool and spa—complete with sauna, changing suites, and its own bathroom.

Of course, a home like this isn’t just for living—it’s made for entertaining. A commercial-grade kitchen, plus a second catering kitchen, ensures no dinner party is too ambitious. A “sophisticated wine salon with capacity for up to 2,000 bottles” sets the stage for intimate tastings or extravagant soirées, and the gazebo dining area, nestled among the trees with its own outdoor kitchenette, is summer hosting perfection.

Located inside the gated Beaver Creek Resort and just minutes from Vail, this estate is mountain living at its most opulent. With access to Beaver Creek’s private Dial-a-Ride service, direct golf course access, and close proximity to world-class skiing and the Vail Valley Jet Center, 181 S Fairway Drive isn’t just a home—it’s a legacy property. Five years post-pandemic, it’s clear that luxury—especially in Colorado’s high country—isn’t going out of style anytime soon.

The past five years have been a defining chapter in Denver real estate, from record-breaking demand to a market that’s now finding its balance. While the days of ultra-low interest rates and bidding wars are behind us, buyers and sellers today are navigating a more sustainable, long-term market. Whether you're looking to move now or planning for the future, understanding these shifts is key. If you’re considering buying or selling this year, let’s connect to discuss the best strategy for your goals.

For Sellers

Sellers today are in a different position than during the 2020-2022 boom. Buyers are more selective, favoring homes that require minimal updates and are priced competitively. Unlike the pandemic years, there’s no built-in urgency—sellers need to create it by presenting a well-maintained, move-in-ready home at an attractive price. While many buyers are waiting for the right property, they’re still willing to compete for well-priced homes in desirable areas. However, homes in HOAs face additional scrutiny, with buyers considering barriers to desirability and financing. If you're planning to sell, now is the time to make your home as appealing as possible.

For Buyers

The rapid price jumps of 2020-2022 have balanced out, and while interest rates remain a factor, the ability to negotiate with sellers and find homes without fierce competition provides an advantage. If you've been waiting for the right moment, this could be it. Colorado’s housing market is shifting in your favor. Three of the top 15 strongest buyer's markets in the nation are here—Colorado Springs ranks fifth, Boulder tenth, and Denver thirteenth—thanks to increasing inventory. More choices and stronger negotiating power make this a great time to explore your options.