DMAR Real Estate Market Trends Report | Dec. '25
The Denver Metro real estate market in 2025 continued the stabilization pattern observed since 2023. Affordability, ownership costs and mortgage rates dominated buyers' decision-making. Sellers navigated a thoughtful adjustment of expectations. They made price adjustments, experienced longer time on the market and accommodated buyer needs through concessions and rate buy-downs. 2025 reflected an industry adapting to a more balanced environment where both buyers and sellers had to adjust their footing.
“In many ways, real estate became collateral damage from wider economic forces beyond the industry’s control,” said Amanda Snitker, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “The Federal Reserve rate cuts, influenced by persistent inflation concerns and tariff uncertainties, kept mortgage rates anchored in the six to seven percent range. Bond market volatility increased borrowing costs, and consumer confidence declined amid rising economic uncertainty. Labor market dynamics and immigration policy added construction cost pressures. These economic variables shaped housing market psychology more than traditional supply-and-demand fundamentals, leaving both buyers and sellers navigating conditions largely determined by forces outside the real estate sector.
As a result, the market remained fairly flat year-over-year. The median sale price in the Denver Metro area increased by just 0.39 percent for detached homes, while attached homes decreased by 2.85 percent. The combined median sale price of attached and detached homes in 2025 was just 0.85 percent higher than in 2022. This stability in median home values reflects a combination of the economic impacts outlined above and the rebalance following the rapid 38.5 percent increase in home values from March 2020 to April 2022.
New inventory in the market in 2025 increased from 2024 and 2023, and buyers appreciated the increase in options. The total number of sales has remained flat for the past three years, fluctuating by less than one percent year-over-year, as has the sales volume. The combination of increased inventory and steady sales has shifted conditions in the buyer's favor. The number of active listings at month’s end in December decreased by 27.59 percent month-over-month, due mostly to many sellers removing their homes from the market over the holidays. It is expected that most of these listings will re-enter the market in the first quarter of 2026.
As we look to 2026, the fundamental market conditions that defined the past three years – modest price appreciation, steady transaction volumes and mortgage rates in the six to seven percent range – show little indication of dramatic change.
Added Snitker, “Buyers will need to focus on creative financing solutions. They should explore rate buydown options, consider a wider range of neighborhoods and property types and work with lenders who can structure loans that maximize purchasing power. Sellers, meanwhile, must focus on competitive pricing from day one. Investing in presentation and pre-listing preparations is essential. Sellers must also remain open to negotiating terms that address affordability concerns.”
Our monthly report also includes statistics and analyses in its supplemental markets that include properties sold for $1 million or greater, properties sold between $750,000 and $999,999 and properties sold between $500,000 and $749,999.
In the $1 million+ market, conditions are returning to a more predictable rhythm five years after COVID introduced widespread uncertainty.
“The period from 2020 through 2022 produced clear outliers – historically low inventory, record-low interest rates and unprecedented liquidity – followed by a gradual normalization that began in 2023,” said Andrew Abrams, DMAR Market Trends Committee member and Metro Denver Realtor®. “By 2025, trends in this segment were largely consistent again, with changes occurring more incrementally, even as buyer demand and average price points in this tier continued to strengthen.”
This market ended 2025 on a strong note, with the highest single-family sale closing in late November at $17 million and the top attached sale reaching $10.13 million in October, according to the highest recorded sales in the MLS. The average sales price for homes sold above $1 million climbed to $1.64 million, the highest average recorded in at least the past five years. At the same time, the pace of sales slowed: year-over-year days in the MLS increased 8.89 percent, reflecting more deliberate buyers and the need for sellers to adjust expectations, remain patient and price realistically, particularly if a property isn’t fully renovated or uniquely positioned.
Detached homes continued to dominate demand within the $1 million+ segment. Of the 5,567 properties that sold above $1 million in 2025, only 245 were attached homes, representing 4.4 percent of sales and underscoring the ongoing premium on space. Homes priced between $1 and $2 million currently have less than three months of inventory, while homes priced above $2 million show 4.97 months of inventory, signaling comparatively slower demand at the highest price points.
Added Abrams, “In the $1 million+ segment, buyers are taking their time and sellers often need to be patient, but preparation and realistic pricing can make all the difference. As we move into 2026, more consistent, seasonal trends should help bring greater confidence and peace of mind to a process that’s inherently stressful.”
Highlights from December’s closed transactions include the sale of the highest-priced attached home, 2800 E 2nd Avenue Unit #202 in Denver, which sold for $5,750,000, and the highest-priced detached home, 1175 E Radcliff Avenue in Englewood, which sold for $6,850,000. Both properties were represented by current DMAR Realtor® members.
