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Stocks May Be Volatile, but Home Values Aren’t

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With all the uncertainty in the economy, the stock market has been bouncing around more than usual. And if you’ve been watching your 401(k) or investments lately, chances are you’ve felt that pit in your stomach. One day it’s up. The next day, it’s not. And that may make you feel a little worried about your finances.

But here’s the thing you need to remember if you’re a homeowner. According to Investopedia:

“Traditionally, stocks have been far more volatile than real estate. That’s not to say that real estate prices aren’t ever volatile—the years around the 2007 to 2008 financial crisis are just one memorable example—but stocks are more prone to large value swings.”

While your stocks or 401(k) might see a lot of highs and lows, home values are much less volatile.

A Drop in the Stock Market Doesn’t Mean a Crash in Home Prices

Take a look at the graph below. It shows what happened to home prices (the blue bars) during past stock market swings (the orange bars):

Even when the stock market falls more substantially, home prices don’t always come down with it.

Big home price drops like 2008 are the exception, not the rule. But everyone remembers that one. That stock market crash was caused by loose lending practices, subprime mortgages, and an oversupply of homes – a scenario that doesn’t exist today. That’s what made it so different.

In many cases before and after that time, home values actually went up while the stock market went down, showing that real estate is generally much more stable.

This graph shows how stock prices go up and down (the orange line), sometimes by more than 30% in a year. In contrast, home prices (the blue line) change more slowly (see graph below):

Basically, stock values jump around a lot more than home prices do. You can be way up one day and way down the next. Real estate, on the other hand, isn’t usually something that experiences such dramatic swings.

That’s why real estate can feel more stable and less risky than the stock market.

So, if you’re worried after the recent ups and downs in your stock portfolio, rest assured, your home isn’t likely to experience the same volatility.

And that’s why homeownership is generally viewed as a preferred long-term investment. Even if things feel uncertain right now, homeowners win in the long run.

Bottom Line

A lot of people are feeling nervous about their finances right now. But there’s one reason for you to feel more secure – your investment in something that’s stood the test of time: real estate.

Read more at Keeping Current Matters

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Greater Denver Area Real Estate Market Report from April 2025

 
 

If you've lived in Colorado for a while, you know spring has a hard time making up its mind - sunshine one day, snow the next. This April, the Denver Metro real estate market mirrored that same unpredictability, according to the Denver Metro Association of Realtors Market Trend Committee.

One week felt hot with buyer activity and quick sales, and the next brought a chill with hesitation driven by fluctuating mortgage rates and uncertainty in the broader economy. Consumer sentiment was cautious - buyers and sellers alike were willing to engage, provided the numbers made sense. While economic uncertainty lingered, the market operated with cautious momentum, driven more by life changes than speculation or urgency.
With seller activity so far in 2025, one thing was predictable: increased inventory. New listings were up 10.78 percent month-over-month and up 18.13 percent year-over-year. We typically see inventory increase in the spring months.

However, this month-over-month increase is slightly larger than the average of 8.37 percent.
Buyer activity usually remains strong during the spring months, and a month-over-month decrease in pending units, although just 2.27 percent, may reflect an early peak in the spring market.

This slowdown in buyer activity and an influx of new listings resulted in a 26.58 percent increase in active listings at month's end for detached homes and an increase of 15.50 percent for attached homes. Comparing this to April 2024, this is an increase of 66.22 percent for detached homes and 81.42 percent for attached homes. With the rise in invento-ry, properties are predictably on the market longer; the median days in the MLS were 13, down 23.53 percent month-over-month, but up 62.50 percent year-over-year.

Despite the increase in inventory, the median sale price increased month-over-month. The median sale price for detached homes was $665,000, a 0.76 percent increase, and the median for attached homes was $389,900, a 0.55 percent increase. Comparing year-over-year, attached properties showed a decrease of 6.05 percent in median sale price.

Year-to-date, we see a slight year-over-year slowdown of 1.82 percent in the number of closed properties. Compared to the year-to-date data of a high-activity year such as 2021, the number of closed properties is down 29.20 percent.

With inventory rising and buyers becoming increasingly selective, it is important for sellers to understand they are in a competitive environment. Every listing now needs to earn buyer attention. Set realistic expectations and help your clients understand how condition, staging, and strategic pricing impact a buyer's perspective.
Buyers in this market are experiencing a lot with interest rates, talks of a recession and uneasy consumer confidence. We can ease these concerns by helping our clients stay grounded in their personal goals and focus on local realities - and financial positions. Focusing on longer-term needs can help ease the uncertainty of the day-to-day.

Learn more about the market from the Denver Metro Association of Realtors.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

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Just Listed: Charming Yellow Gem in the Heart of West Highlands

 

Just three blocks from Highland Square, this home built in 1900 is on one of the most coveted streets in West Highlands!

Inside you will find hardwood floors throughout and most of the original trim (which was just touched up!) around the tall windows. The three bedrooms are all on the west side of the home, one in the front, middle, and back! The middle bedroom is staged as an office to show off its versatility. With freshly painted cabinets, the kitchen feels light, fresh, and ready for everyday living. Step outside and you’ll find the cutest backyard, perfect for laid-back summer hangs. Situated on a large lot, through the back door, or the side fence you have a covered stone patio, mature trees and grass with sprinklers, too! The french doors + flower potted windows make the outdoor space look fully "put together". The "little yellow" house on Hayward is a bit brighter, as the full exterior of this home + garage was just painted with a warranty! Back in the late 1800's this area of Denver was promoted as quieter, cleaner, with quality living, limited drinking, no cursing, no spitting, and no marble playing on the sidewalks! These rules may not be enforced today, but the quality living is still there and there are several restaurants, shops and parks right down the streets. From May - October, you will have quick access to the Highlands Farmers Market that will keep your fridge full of the best Colorado fruits and veggies, and a full vase of flowers to make you smile! You are going to LOVE living in this home, and this area of Denver... especially on this street!

Listed by Emily Johnson for West + Main Homes. Please contact Emily for current pricing + availability.

 
 
 

Have questions?
West + Main Homes
(720) 903-2912
hello@westandmainhomes.com

Presented by:
Emily Johnson
(303) 704-3045
emilysellsdenver.com

 
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Just Listed: This charming 6-bedroom, 3-bathroom gem is bursting with space and character!

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This charming 6-bedroom, 3-bathroom gem is bursting with space and character!

Tucked into the heart of the Columbine West neighborhood, this charming 6-bedroom, 3-bathroom gem is bursting with space, character, and that warm, neighborly vibe we love here in Littleton. With a freshly painted interior and newer carpet upstairs, the home is move in ready. Talk about backyard goals with a spacious, flat yard that’s garden-ready and BBQ-approved. The patio is calling for weekend grill-fests, epic yard games, or just a relaxing glass of wine while the sun sets. Prefer your sunsets with a view of the foothills and friendly waves from neighbors? The west-facing covered front porch has you covered—literally. Outdoor enthusiasts, you're in luck—Dutch Creek Trail is just at the bottom of the hill, offering scenic strolls, bike rides, or a quick jog to reset your day. And just minutes away, Clement Park brings concerts, playgrounds, fishing, and open space to your weekend plans. Inside, there’s room for everyone and then some. Whether you're working from home, hosting out-of-town guests, or just need everyone to have their own space, this home delivers. The main floor features a cozy custom fireplace recently upgraded with stacked stone and a wood mantle, perfect for snuggling in on chilly nights or hosting holiday movie marathons. The finished basement is the ultimate flex space—home gym, playroom, second office, teen hangout, or maybe even your future home theater. This is more than a house—it’s the kind of home where memories are made, gardens are grown, and neighbors become friends. Come see why life in Columbine West just hits different!

Listed by Steph Christianson for West + Main Homes. Please contact Steph for current pricing + availability.

 
 
 

Have questions?
West + Main Homes
(405) 652-6635
hello@westandmain.com

Presented by:
Steph Christianson
303-668-6800
steph@westandmainhomes.com


 
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Morgan Stanley predicts major mortgage rate changes are coming soon

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When mortgage rates surged in 2022, doubling from 3.5% to nearly 7%, it marked an end to the Covid-era housing boom. Stubborn mortgage rates have kept the market at a standstill, making purchasing a home more expensive for buyers and discouraging sellers from listing their homes.

Although mortgage rates were initially projected to drop notably in 2025, sticky inflation and economic uncertainty have kept them above 6.5%, despite three consecutive interest rate cuts at the end of 2024.

It may take longer than expected, but mortgage rates are expected to modestly yet steadily decline through 2026.

Morgan Stanley analysts now predict that treasury yields will decline over the next two years, bringing mortgage rates down as well. Lower treasury yields are often caused by economic downturn and volatility in financial markets, but a reignited housing market would help stimulate GDP and economic growth.

Mortgage rates could drop as treasury yields fall

Although mortgage rates are influenced by the federal funds rate, they are more strongly tied to the 10-year treasury yield.

Lenders use the treasury yield as a benchmark for mortgage rates to keep mortgage-backed securities competitive with treasury bonds.

Secretary of the Treasury Scott Bessent has publicly announced the Trump Administration's commitment to bringing down the treasury yield to provide housing relief, and Morgan Stanley analysts believe that will happen in the next two years.

In a new report, the investment bank wrote, "The good news is: Morgan Stanley strategists anticipate that mortgage rates could fall with Treasury yields over the next two years and home prices may decrease slightly amid increased housing supply."

However, the treasury yield drops during economic uncertainty, as bond demand and prices rise when investors flock to 'safe' investments. If mortgage rates fall due to an economic downturn, it may be difficult for housing activity to revert to previous levels.

A housing revival may be the key to GDP growth

If mortgage rates do continue to fall through 2026 without a recession, increased homebuying could help stimulate the U.S. economy through GDP and consumer spending.

The National Association of Home Builders (NAHB) found that consistent mortgage rate declines in early 2025 raised homebuyer confidence enough to increase housing sales.

Increased housing sales will not only create a hotter housing market but will likely increase economic activity. Morgan Stanley predicts consumer spending and residential investment will rise as lower mortgage rates reinvigorate the housing market.

“Housing flows into gross domestic product (GDP) not only through residential investment, but also through the impacts on consumption,” Morgan Stanley economist Heather Berger said. “Households spend more on durable goods following home purchases.”

U.S. Real GDP growth dropped 0.3% during Q1 2025, largely as a result of lower imports from reciprocal tariffs announced by the Trump Administration. Housing-related economic growth may become increasingly important as the full effects of U.S. trade wars are realized.

Read more at The Street

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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