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Recent reports have shown that the Denver real estate market in 2025 could be more friendly toward home buyers.
Home prices have flattened out after several years of steady gains. Houses are taking longer to sell with fewer offers. The Denver metro area was recently singled out as having the biggest increase in new real estate listings over the past year.
Through the rest of 2025, some Denver home buyers could enjoy a more casual house-hunting experience with more properties to choose from.
Earlier this month, researchers from Realtor.com published a housing market update that included trends for the nation’s 50 largest metro areas. Among other things, this report showed that many markets across the country are finally experiencing some much-needed inventory growth.
The Denver metro area topped the list, posting the biggest year-over-year increase in new real estate listings over the past year or so.
“In January, more than half of the 50 metros included in the analysis saw new listings increase over the previous year, with some of the largest growth happening in Denver (+21.3%), Seattle (+20.6%), and Miami (+20.2%).”
The Denver new home listings metric looks at how many homes have come onto the market recently and how that rate changes over time. The Denver metro area also had a measurable increase in total housing market inventory over the past year.
If this trend continues, home buyers who enter the Denver real estate market in 2025 could have an easier time finding a property. They might encounter less competition from other buyers as well, due to a better balance between supply and demand.
To be clear, the Denver real estate market still suffers from a relative supply shortage. The same is true for most major cities across the United States. However, the situation appears to be improving for home buyers in 2025.
In this latest report, the Denver real estate market also stood out in other ways. It’s one of the only major housing markets in the country that currently has a slower sales pace than before the pandemic.
In Denver, the average time that homes stay on the market has increased, indicating a general slowdown within the real estate market. This means sellers are taking longer to sell a house these days.
This is another positive trend for Denver-area home buyers in 2025. In addition to having more properties to choose from, local buyers might enjoy a more relaxed house-hunting experience.
According to Multiple Listing Service (MLS) data and other sources, Denver-area homes spent a median of 44 days on the market in January 2025. The median DOM hovered below ten days a couple of years earlier, indicating a much faster pace.
So, no matter how you measure it, the Denver real estate market in 2025 is moving slower.
But buyers beware. The market is not necessarily “slow all over.” Conditions can vary from one community or neighborhood to the next. Desirable homes in hot neighborhoods are selling quickly in the Denver metro area, with a significant percentage off the market within two weeks.
Denver home price trends over the past few years can be summed up in a single sentence. Home prices rose steeply during 2022, declined a bit going into 2023, and remained flat over the past year or so.
According to the latest data from Zillow, the median home price within the Denver real estate market was around $550,000 last month. That’s roughly where it was one year ago.
This is another trend that could benefit Denver home buyers in 2025. Instead of feeling the urgency brought on by rapidly rising prices, buyers entering the housing market over the coming months could feel less pressure.
One forecast even predicted that prices in Denver could decline a bit during the rest of 2025. That prediction also came from Realtor.com but in a separate report from the one mentioned above.
The Denver real estate market has cooled considerably; home buyers could benefit from that in 2025.
The Denver area hasn’t entirely shifted from a seller’s to a buyer’s market. There is still an ongoing shortage of homes for sale compared to the number of buyers seeking them. And such conditions tend to favor sellers when it comes to negotiating.
It’s more accurate to say that conditions in the Denver real estate market in 2025 have shifted in a buyer-friendly direction. With stable prices, lower mortgage rates, and more properties to choose from, Denver home buyers have a golden opportunity to succeed in 2025.
If you’re looking at buying a home in Denver, CO, in 2025, consider partnering with a team of mortgage specialists early on. Before you start house hunting, get pre-approved for a mortgage in Denver, CO so you’re ready to put in a solid offer when you find the perfect place to call home!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.