Colorado real estate market update: Stagnant sales, mergers
Colorado Real Estate Companies Brace for Changes in 2025
As the Colorado real estate landscape prepares for a year of transformation, industry players are anticipating significant shifts. From agent exodus to a stagnant market due to high interest rates, and a wave of company mergers and closures, the sector is bracing for impact.
Commission Landscape
Despite expectations following a landmark court settlement by the National Association of Realtors last summer that was projected to lower commissions, Denver-area real estate firms have seen minimal changes so far. Jon Larrance, broker-owner of Corcoran Perry Co., noted, “We have observed some change, albeit modest. The lawsuit set the stage for higher commission rates, paving the way for agents to adopt upfront retainers akin to other respected professionals.”
New Home Star Market Strategist, Dan White, believes that while agent commissions may decrease, companies can maintain agent pay by increasing fees.
Challenging Market Conditions
Real estate agents are grappling with a tough market characterized by interest rates surpassing 6%. Despite a recent uptick in inventory, elevated home prices and sluggish sales persist. The Denver metro area recorded 1,061 closed sales in the first quarter of 2025, reflecting a mixed trend over the past few years.
The median home sale price in March stood at $599,000, showcasing a 3.9% decline from its April 2022 peak but still registering nearly 7% annual appreciation over the last five years.
The housing market has largely stagnated over the past two years post a pandemic-driven surge, prompting some agents to exit the field.
Liliana Mendez, operations manager at Madison & Co. Properties, acknowledged the market’s challenges, stating, “Experienced, well-supported agents are poised to not only survive but thrive and capture market share amidst the adversity.”
Stacie Staub, CEO of West + Main, noted a slight agent attrition but remains optimistic about the company’s retention rates due to competitive fees and commission splits.
Industry Consolidation on the Horizon
Colorado real estate firms are gearing up for further industry shakeups, with expectations of agency closures and mergers in the near future. Recent acquisitions like Rocket Companies acquiring Redfin and Compass in talks to buy Berkshire Hathaway’s HomeServices of America signal a wave of consolidation.
Chris Laskowski, market director at New Home Star, foresees a leaner workforce with fewer agents as mergers and the rise of online listing platforms reshape the industry.
While smaller brokerages may face challenges, Madison & Co. Properties and West + Main are confident in their ability to weather market shifts and maintain success.
Original Publication Date: May 14, 2025 at 6:00 AM MDT
