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Denver Housing Market Update – August 2025:
What the Data Actually Tells Us
Watch the full video for the detailed breakdown:
Seasonal Shifts Are Here, But They’re Normal
Let’s start with the basics. Yes, prices went down in July. The average and median sold prices dropped. And yes, showing traffic was sluggish. None of that is shocking and it happens almost every year. The Denver Housing Market typically appreciates in the spring, levels out in summer, and dips in the fall. This year, that spring surge was softer than usual and we gave back a noticeable chunk of that appreciation in July. There may still be a small bump in September or October, especially since interest rates have ticked down slightly. But whether we end 2025 flat or with slight appreciation is still up in the air.
Are Prices Really Increasing for the year? It Depends on the Metric…
One of the most misleading figures people rely on is sold price alone. Sure, average prices dropped for July and are overall up for the year, but that’s not the full picture! More high-end homes ($1M+) are selling than lower-priced ones (under $375K), which inflates the average and hides what’s happening when just looking at Sold Price. Price per square foot ($/sf) tells a more nuanced story. Since the rate hikes in 2022, the $/sf has been mostly flat across the Denver Metro and even decreasing depending on the property type and price point. That means people aren’t paying more for the same amount of house, they’re just buying more house. Bigger homes, more space, but not necessarily more value. So if you think your home is worth more just because “the market’s up,” you need better info specific to your area.
Condos and Townhomes: Proceed with Caution
A major concern this month is the continued decline in value for condos and townhomes under $375K. The price per square foot for that category has dropped significantly, down to $272/sf (on a 3 month rolling average) from a peak of $336/sf in spring 2023. Why? Rising HOA fees, insurance costs, and buyer preferences. These properties now offer the least amount of space per dollar, and the highest monthly costs due to fees, yet they’re seeing the lowest buyer interest and highest supply vs. demand ratio. This affects both affordability and resale potential. Sellers of condos/townhomes: Talk to your HOA before listing. If financing isn’t available due to complex issues, you may struggle to close even if you find a buyer.
Buyers Are Out There, But They’re Picky
Showing traffic in July was very low. The last time it was this slow? April 2020, right when the world shut down! That’s how quiet things are right now. My listings are still getting solid traffic. Why? Because I work with sellers to price homes for today’s market and what’s coming up, not looking backwards. Most buyers are smart, rate-conscious, and risk-averse; they’re not showing up for overpriced listings. If you want activity, you have to be priced right and show well. And honestly, you should expect some negotiation.
Overpricing Is Costing Sellers, Big Time
Let’s talk numbers. On average, homes are closing at 98.9% of their current list price. But when you compare it to the Original list price, sellers are accepting offers that are about 3.9% lower. And that doesn’t even factor in concessions, which are averaging: $7,200 on single-family homes and $4,000 on condos. Factoring those in, homes are selling for 94.7% of what they originally listed for. So sellers, here’s the truth: If you start too high, you’ll chase the market down. You’ll do price drops, lose leverage, and likely still end up selling for less than if you’d priced correctly from the beginning. And doing price drops doesn’t mean you “lost money”, you didn’t have it in the first place, your house was never worth that number in today’s market to start with. A property is worth what a ready, willing, and able Buyer is will pay at that point in time.
Strategy Matters More Than Ever
Whether you’re planning to sell in 6 months or just curious about your home’s value, now is the time to start planning. The most successful sellers I work with are the ones who contact me early so we can: analyze the data by property type and location; review your HOA and lending conditions (especially for condos/townhomes); plan to price your home strategically based on future market conditions, not just past comps; and prepare your property to stand out in a slower market.
The Denver Housing Market isn’t crashing, but it is a constantly changing and reacting market. Strategy, preparation, promotion and pricing are everything. If you’re a buyer, there’s opportunity, especially in larger homes where you’re getting more for your money per square foot. If you’re a seller, you need to approach the market with realistic expectations, not wishful thinking. And if you’re not sure where to start, I can help.
Ready to make a plan?
Book a consultation at www.calendly.com/RealtorStacie
Or call/text me at 720-295-9089
Let’s talk through your goals, your options, and make a game plan that actually works.
