The Denver December 2025 market update reveals a shifting landscape for real estate investors. Inventory ended the year at 7,600 active units – up 10% from December 2024 but down sharply from November’s 10,500 units as sellers pulled listings heading into the holidays. The bigger story? Attached properties (condos and townhomes) surged 20% year-over-year while detached homes stayed relatively flat, signaling where market pressure is building. Then the new year arrived and everything accelerated.
Chris Lopez hosts Troy Howell from Nova Home Loans and Jeff White from Envision Advisors to cover Denver’s December 2025 market update. The panel covers Denver metro year-end trends, interest rate movements, and what just happened in the first week of the new year. Over 20 small multifamily properties hit the market in just the first 8 days of January – an unusual flood of inventory during the worst season to sell. Troy reveals interest rates dropped nearly a full percentage point year-over-year (from 7.04% in January 2025 to 6.16% in January 2026) with predictions for continued decline, while data shows 6%+ mortgages now outnumber sub-3% loans nationwide, signaling the lock-in effect may finally be breaking.
The panel digs into what December’s inventory patterns mean for 2026 buying opportunities, examining why motivated sellers are listing in winter and how this creates negotiation leverage. Jeff conducts live underwriting of a $750K 4-plex near South Broadway that dropped $139K in price, walking through actual spreadsheet analysis comparing house hacking (5% down, 9.39% cash-on-cash return) versus traditional investing (25% down, 5.75% return). Both strategies dramatically outperform the 1-2% market average most investors are seeing, proving cash flow still exists in Denver’s current market conditions.
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In This Episode We Cover:
- December 2025 inventory recap: 7,600 units (up 10% YoY from Dec 2024), why attached properties jumped 20% while detached stayed flat
- Why 20+ small multifamily listings flooded Denver in January 2026’s first 8 days during the worst selling season
- Interest rate trends: Down from 7.04% (Jan 2025) to 6.16% (Jan 2026), with VA loans reaching low 5% range
- How the lock-in effect is ending as 6%+ mortgages now exceed sub-3% mortgages nationwide
- Live underwriting showing $750K 4-plex delivering 9.39% returns for house hackers vs 5.75% for investors
- Colorado Springs new construction duplex deal with 100% VA financing and 12-month occupancy flexibility
- Why properties are selling at 2018-2019 price levels and what this means for long-term investors
December’s data confirms inventory is building but hasn’t reached problematic levels – we’re still well below the 15,000-30,000 units seen during the 2008-2012 period. The seasonality cliff from 14,000 summer units down to 7,600 by year-end is normal, but what’s not normal is the January 2026 surge of motivated sellers listing during peak winter. Troy explains how current rates make deals pencil again after years of struggle, while Jeff’s spreadsheet analysis proves the math works for both house hackers and traditional investors.
Subscribe to our reactivated deal alert emails and join our February 2026 webinar for deeper small multifamily analysis as we track how this inventory surge plays out through the year.
Timestamps
00:00 – Welcome & New Year Market Update Introduction
01:43 – December Inventory Analysis: 7,600 Active Units Up 10% Year Over Year
04:15 – Why Attached Properties Jumped 20% While Detached Stayed Flat
07:15 – The January Flood: 20+ Small Multifamily Listings in 8 Days
12:47– Live Deal Analysis: $750K 4-Plex Near South Broadway (Dropped $139K)
16:23 – House Hacking Numbers: Live in Your Unit for $1,338/Month
19:20 – Investor Analysis: 5.75% Cash-on-Cash vs 1-2% Market Average
25:28 – New Construction Duplex Deal: 100% VA Financing in Colorado Springs
27:19 – VA Loan Occupancy Rule: 12 Months vs 60 Days for Conventional
33:12 – Interest Rate Update: 6.16% Down from 7.04% One Year Ago
35:06– Mortgage Lock-In Effect Ending: 6%+ Loans Now Exceed Sub-3% Mortgages
36:38 – Trump Proposes Ban on Institutional Single-Family Home Buyers
Connect with our Guests:
Jeff White: [email protected]
Troy Howell: [email protected]
- LinkedIn: Troy Howell
- Website: https://www.novahomeloans.com/loan-officer/troy-howell/
Links in Podcast
For the First Time in Years, More Homeowners Have a 6% Mortgage Rate than a 3% One
Subscribe to our Reactivated Deal Alert Emails
Download the Free House Hacking Spreadsheet
Who is Keyrenter?
Keyrenter Property Management Denver provides rental solutions for homeowners and real estate investors in the metro area who are interested in transforming their properties into passive income. It offers various services, from property marketing and thorough applicant screening to tenant placement and 24/7 maintenance services. Keyrenter Denver’s team of experts can take the clients’ burden of managing their rental off their hands so they can get back to what matters to them.
Who is Nova Home Loans?
For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today!
NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO
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