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olorado real estate companies are bracing for a year of change, with high interest rates and stagnant market conditions leading to agent departures and potential mergers or closures. Despite the National Association of Realtors' landmark court settlement last summer, which aimed to lower commissions, Denver-area firms report few changes.
"We've seen some modest changes, but nothing significant," said Jon Larrance, broker-owner of Corcoran Perry Co., ranked sixth on this year's Top Workplaces list. The lawsuit has instead paved the way for higher commission rates and upfront retainers, with top agents demanding the highest compensation while part-time agents compete for discounted clients.
New Home Star Market Strategist Dan White notes that agent commissions may decrease, but real estate companies can maintain agent pay by increasing fees. A challenging market persists, with interest rates above 6% and home prices elevated despite inventory increases.
The Denver metro recorded 1,061 closed sales in the first quarter of 2025, a 7% increase from 2024. However, median home sale prices remain high at $599,000, down 3.9% from its April 2022 peak but still showing an annual appreciation of almost 7% over five years.
Some agents may leave the industry due to market conditions, but experienced and well-supported agents are better positioned to thrive. Madison & Co. Properties' operations manager Liliana Mendez notes that her company has lost a few agents but doesn't anticipate significant losses.
Real estate companies must provide support to their agents, said New Home Star market director Chris Laskowski. Companies like Corcoran Perry Co. and West + Main are adapting to the changing landscape by offering more affordable fees and commission splits, allowing agents to maintain their licenses even in slower selling seasons.
However, buyers and sellers face additional risks when working with part-time agents, who may not be actively engaged in the business or up-to-date on changing regulations. Colorado real estate companies anticipate more shakeups, including agency closures and mergers, as seen in recent acquisitions like Rocket Companies' purchase of Redfin and Compass's talks to acquire Berkshire Hathaway's HomeServices.
Smaller brokerages may struggle, but strong foundations, reputations, and adaptability can position companies for continued success. West+Main CEO Stacie Staub notes that the industry is experiencing mergers and acquisitions not only between brokerages but also with finance, mortgage, and title companies.
