🏡 Full Denver Housing Market Update — Late December 2025

🏡 Full Denver Housing Market Update — Late December 2025

The Denver residential real estate market is unmistakably in a transition phase. After years of frenzied activity, 2025 is closing with clear signs of a seasonally slow yet structurally evolving environment that favors buyers more than in recent memory. Here’s a full, digestible look at what’s going on — and what it means if you’re buying, selling, or just watching for your next move.

1) Market “Recalibration” Is Real

This year has been less about a dramatic crash and more about a correction toward long‑term norms. Prices aren’t spiraling — but value trends tell a nuanced story:

• Roughly 91% of Denver homes have lost some value year‑over‑year, reflecting broad softening from peak levels.

• Despite that, the median single‑family home price in metro Denver sits near $630,000, which is still about a 3% increase compared to last year. That seeming contradiction — downward value pressure alongside modest median price growth — is what analysts call a “sideways” market.

This means instead of runaway upward moves, prices are stabilizing and often shifting in response to local supply and buyer demand.

2) Higher Inventory = More Choices

One of the biggest shifts we’ve seen:

• Active inventory climbed to about 17,107 homes in late 2025 — the most we’ve seen in over a decade.

• Compared to pre‑pandemic levels, Denver’s active inventory is up more than 50%, giving buyers significantly more options.

• Because of this glut of options, Denver ranks second in the nation for delistings — many sellers are choosing to pull homes rather than reduce price to match buyer expectations.

More inventory typically slows competition and cools pricing pressure — which we’re seeing firsthand.

3) Buyer Leverage and Market Behavior

2025 saw notable shifts in buyer negotiating power:

• Across Colorado, homes are averaging 68 days on market, up about 12% from 2024.

• Sellers are offering more concessions, and data shows buyers are regularly closing at ~5.7% below original list price.

That’s a meaningful change from past years where multiple offers and over‑list bidding were common.

4) Segment Nuances — Not All Housing is Equal

Different pockets of the market are telling different stories:

Condo & Attached Homes

• These segments have softened more than single‑family homes. Denver condos/townhomes saw median prices down about 3.1% year‑to‑date, showing buyers are especially price‑sensitive here.

Luxury & Highlands Areas

• Luxury downtown property sellers are trimming prices to find traction — for example, notable high‑end listings selling after sizable cuts.

Mountain & Resort Markets

• Summit County’s single‑family sales jumped ~73% during ski season, even as median prices eased about 7.5%.

• Grand County values are modestly down, but inventory there is up nearly 30%.

• Demand remains strong in remote‑work‑friendly foothills like Evergreen and Conifer, though rising insurance costs and wildfire mitigation are starting to factor into buyer decisions.

Colorado Springs

• While Denver cools, Colorado Springs continues to be recognized as a top national market for 2025, with strong projected sales growth and price appreciation fueled by military demand and affordability.

5) Mortgage Rates and Buyer Interest

Mortgage rates have stabilized compared with last year — lingering in the low‑to‑mid 6% range — which helps maintain buyer interest during this seasonal lull. Lower rates would certainly inject additional activity, but even as is, buyers are stepping into a more favorable environment than they experienced in the past few years.

6) What to Expect in 2026

Looking forward, economists and local analysts are forecasting a continued balanced market:

• Modest annual price growth — possibly in the 3–4% range for Denver.

• Increased spring activity as pent‑up buyers re‑enter the market.

• Opportunity windows for buyers who act early and for sellers willing to price competitively.

In short: the frenzy is over, but the market is far from frozen. Instead, we’re entering a phase where strategic moves win — and where understanding nuances matters more than broad headlines.