DMAR Real Estate Market Trends Report | Jun. '25
As we wrap up the first half of 2025, one theme is emerging loud and clear across the Denver Metro real estate market: success hinges on aligning expectations with present-day conditions. Both buyers and sellers entered the year with hopes shaped by early forecasts – many anticipating falling interest rates and renewed buyer activity. But the reality has been far more nuanced. Mortgage rates have remained elevated, inventory is rising across all price points, and affordability constraints are increasingly driving buyer behavior.
The balance of supply and demand has shifted in a direction the Denver market has not seen in quite some time. A sharp rise in new listings in April and May significantly outpaced buyer demand, leading to longer days on market and more frequent price reductions. In June, new listings decreased by 18.43 percent compared to May. A seasonal trend that aligns with historical patterns, as inventory typically peaks in May or June.
This growing supply is starting to moderate price growth. In June, the median sale price for detached homes rose a modest 0.13 percent month-over-month to $665,895. Attached homes showed no change, holding steady at a median price of $400,000. While price stability can be encouraging, the underlying shift is clear: upward price pressure has softened, particularly in segments with the most inventory.
Sellers are having to adapt to a slower pace. The median days in MLS in June climbed to 16 for detached homes, a 60 percent increase from May, and 30 days for attached homes, up 20.22 percent. Inventory levels now exceed two months across all price points. High-end properties are experiencing the most significant drag; detached homes priced above $2 million now carry nearly six months of inventory, while attached homes priced between $1 and $2 million have a supply of more than 10 months.
“The Denver Metro real estate market at midyear 2025 is a study in recalibration,” said Amanda Snitker, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Buyers and sellers who began the year operating on outdated assumptions – expecting lower interest rates, surging competition or guaranteed appreciation are now confronting a market that demands flexibility and realism. Decisions based on what should be happening are leading to hesitation, missed opportunities and stalled deals.”
For sellers, pricing based on last year's peak or early 2025 optimism is proving to be a risky strategy. Today's buyers are cost-conscious, deliberate and quick to pass over listings that are unprepared or overpriced. Real-time market awareness, achieved through data-driven pricing strategies, competitive positioning, and responsiveness to buyer feedback, is essential for achieving a timely sale.
For buyers, waiting for the "perfect" rate or perfect timing can be just as costly. While inventory is up and prices are stabilizing, desirable homes are still moving and the cost of delay in a high-rate environment adds up fast.
“We do not have a bad market, it’s a different market. In this new environment, those who stay grounded, informed and responsive will be the ones who succeed. Real-time awareness is the most valuable asset buyers and sellers have,” added Snitker.
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+ segment, active inventory ended June at 2,561 listings. Median days in MLS rose from 9 to 15 in June, slowing 50 percent year-over-year. In response and unsurprisingly, close-price-to-list-price ratios dipped by .93 percent, ending the month at 98.10 percent. Even so, price per square foot managed to inch up slightly to $381.
Attached homes between $1.5 and $1.99 million now offer 14.33 months of inventory, a clear sign that buyers are squarely in the driver’s seat. However, with so many options, demand has diluted. Showing activity is sporadic and buyer behaviors are unpredictable. Buyers have become increasingly particular and have no appetite to assume "projects" like deferred maintenance, repairs or overdue renovations, even when sellers offer generous incentives.
“At the beginning of the year, two questions were on everyone’s mind: When would interest rates drop and how high would inventory rise?” said Michelle Schwinghammer, DMAR Market Trends Committee member and Metro Denver Realtor®. “Now at the mid-year mark, rates remain frustratingly high for borrowers and active inventory in the Denver Metro has surpassed the 14,000 mark, its highest level since 2011.”
Added Schwinghammer, “The most significant shift is that buyers are waiting for their “perfect home” to bring an offer at all. Sometimes, timing is charmed and a buyer finds their “Cinderella Fit” within a few days of a home's debut; other times, and more often, listings must withstand time in the market for their “perfect buyer” to find and choose their home.”
Average days in MLS for attached homes in this segment shot up from 37 in May to 118 days in June, skyrocketing 218.92 percent. This spike was due to a single long-running listing which was sold three years after being listed in April 2022. This example proves that every home has its buyer: sellers may just have to wait to find theirs in a crowded market.
Highlights from closed transactions in June include the highest-priced attached home at 223 Garfield Street in Denver, which sold for $4,475,000, and the highest detached sale at 1700 E Tufts Avenue, an 11,062-square-foot estate in Cherry Hills Village on a 2.5-acre lot. It closed in just 18 days for $6,840,000.
