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As we wrap up the first half of 2025, one message is clear across the Denver Metro real estate market: success today depends on aligning expectations with the reality of current market conditions. Many entered the year hoping for falling interest rates and renewed buyer competition. But instead, higher mortgage rates, rising inventory, and affordability concerns have reshaped the landscape.
Market Overview – June 2025:
- Active Listings: 14,007 homes were on the market at the end of June, up 3.00% from May and 37.14% higher than last June.
- New Listings: Dropped significantly to 5,929, a decrease of 18.43% from May, though still 1.80% higher than a year ago.
- Pending Sales: Slightly declined to 4,068, down 1.62% from May, but 5.74% higher than June 2024.
- Closed Sales: Totaled 3,864, down 9.59% from May and 1.65% from last year.
- Average Sale Price: Rose to $743,572, reflecting a 3.40% increase month-over-month and 3.64% year-over-year.
- Days in MLS – Average: Increased to 37 days, up from 33 in May and higher than 28 days in June 2024.
- Close-Price-to-List-Price Ratio: Edged down to 98.99%, lower than May’s 99.32% and June 2024’s 99.54%.
Current Market Conditions:
Detached homes saw the median price rise marginally to $665,895, while attached homes held steady at $400,000. However, the pace of sales has slowed. Detached homes are now taking a median of 16 days to sell—a 60% increase from May—while attached homes are spending a median of 30 days on the market, up over 20%.
Inventory levels across all price points now exceed two months, with high-end homes facing the most significant headwinds. Detached properties priced over $2 million have nearly six months of inventory, and attached properties between $1 and $2 million now carry more than 10 months of supply.
Reflecting on the Market Shift:
Five years after the pandemic began reshaping the housing market, Denver’s real estate scene finds itself recalibrating once again. Buyers and sellers who began 2025 relying on expectations of rapid appreciation or falling rates have encountered a more complex reality.
For sellers, pricing based on past peaks—or even early 2025 optimism—is risky. Buyers today are cautious, budget-conscious, and quick to dismiss homes that are unprepared or overpriced. Success requires precise, data-driven pricing, quality presentation, and responsiveness to market feedback.
For buyers, waiting for the “perfect” interest rate can be costly. While inventory is higher and price growth has softened, attractive homes still move quickly, and delaying can mean paying more in a high-rate environment.
Looking Ahead:
This isn’t a bad market—it’s a different market. The opportunities are still there for those willing to stay grounded, informed, and flexible. In 2025, we’re all navigating the market we have, not the one we expected. Real-time awareness and adaptability remain the most powerful tools for achieving real estate goals.
Need Guidance?
Navigating this shifting landscape takes insight and strategy. Whether buying, selling, or exploring your options, I’m here to help you stay ahead of the curve with tailored advice and market expertise.
As we move into the summer season, May 2025 has delivered a clear message: patience and preparation are more important than ever in this evolving real estate market. While buyers re-engaged and sellers continued to enter the market in greater numbers, success now depends on timing, presentation, and flexibility.
This update is based on information provided by the Denver Metro Association of Realtors® for the period of June 1, 2025, through June 30 2025, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.
