June 2025 Denver Housing Market Update

Denver Housing Market Update – June 2025:
The Data, The Reality, and What It Means for You

Watch the full video for the detailed breakdown:

If you’ve been waiting for the Denver housing market to shift, now’s your moment. The data from May 2025 paints a clear picture: inventory is at a 12-year high, buyers have more leverage than they’ve had in a long time, and sellers need to get serious about pricing, presentation, and motivation.

Whether you’re buying, selling, or just trying to understand the trends, this blog post is your data-driven overview of the Denver Housing Market.

Historic Inventory Levels
We’ve now surpassed 13,000 active listings across the seven-county Denver Metro numbers we haven’t seen since 2011–2012. This is a pivotal shift. The market is clearly moving from scarcity to saturation.
Why does this matter? Because our market, like any other, is driven by supply and demand. And right now, there’s more supply than we’ve had in over a decade. If you’re buying, this means more options, more negotiation power, and potentially better prices. If you’re selling, this means you need to outshine your competition, because there’s plenty of it.

Key Stats from May 2025
Median Sales Price (All Residential): $595,000
Average Sales Price: Just under $710,000
New Listings in May: Nearly 7,000
Days on Market: 33 average, 13 median
Months of Inventory: 3.7 months, highest since 2012

Pending sales ticked up slightly, which indicates a bit of new buyer activity, but it’s nowhere near enough to soak up the current surplus in supply. Homes are sitting longer, and price reductions are increasingly common.

Why Inventory Matters
Having over 13,000 listings doesn’t mean 13,000 homes on the market at once, it means that throughout the month of May, that many homes were available. Still, this is a volume we haven’t seen since the aftermath of the 2008 housing crisis. The last time we had these conditions, sellers had to work harder. You couldn’t just list your home and expect it to sell with minimal effort. Presentation, staging, pricing, and repairs all became critical, just like now.

Buyer Leverage Is Back
Buyers, especially first-timers, are gaining real leverage. This is the best position buyers have been in for years. With more listings, there’s less urgency. You can negotiate more inspection items, get seller concessions, or even come in under asking, especially on homes that have been sitting for a while. If you’ve been waiting for the market to crash, this is your version of it, only it’s more of a “soft landing” due to higher interest rates and an inventory surge, not a price collapse.

Sellers: Time to Get Real
If you’re trying to sell your home, especially a condo or townhome, here’s what you need to know:
Your competition is growing.
Buyers have more options.
Listings need to look better than ever.
Buyers are picky and price-sensitive. That means poor listing photos, outdated finishes, or even small cosmetic flaws can make your home the one buyers skip over.

In one example that reached out to me recently, a seller had a beautifully photographed listing, but the house itself didn’t match the pictures in person. It had been on the market for nearly two months while two nearby homes listed and sold within the last 2 weeks. Why? Buyers likely walked in and felt underwhelmed, and chose better-priced, better-presented options.

Condos and Townhomes: A Tougher Sell
Attached properties (condos, townhomes, multifamily) are in a much tougher spot than detached single-family homes. We’re seeing 5.2 months of inventory for these properties, meaning supply is high, demand is low, and buyers are not biting. In fact, we haven’t seen this much oversupply in attached housing since 2011.
Why are condos struggling?
• High HOA dues: When monthly fees climb, buyers start to wonder if a single-family home might make more sense for a similar monthly budget.
• Lending issues: Fannie Mae and Freddie Mac have tightened their rules, especially for Complexes with high insurance deductibles or inadequate reserve accounts.
• Insurance costs: As master policy premiums go up, HOAs are raising deductibles to control costs. But a deductible over 5% disqualifies many loans, which narrows the buyer pool.
• Market perception: Many attached properties have been losing value or remaining flat for years. For example, median condo prices have been on a steady decline since mid-2022.

If you’re trying to sell one, work with an agent who understands these nuances, especially the lending side. You don’t want to list a property only to discover buyers can’t finance it.

Pricing Trends and Dollar-Per-Square-Foot
Another signal of buyer leverage is that dollar-per-square-foot is starting to decline. This typically happens in the second half of the year, and savvy investors are already paying attention. If you’re thinking about buying in Q3 or Q4, there may be even better deals ahead, especially if interest rates remain steady and inventory continues climbing.

Time on market is also diverging between property types:
Single-Family Homes: Median 10 days, Average 29 days
Condos/Townhomes/Multi-Family: Median 25 days, Average 44 days

Attached properties are taking 50%+ longer to sell.

Advice for Buyers
Now is the time to explore options. Even if interest rates are still higher than you’d like, the price and terms you can negotiate today may offset that.

For example, one of my buyers just got a fantastic deal on a townhome, after the seller aggressively dropped the price and then still negotiated inspection items. It appraised cleanly and they got an appraisal waiver with 10% down. That kind of opportunity hasn’t existed in years.

Advice for Sellers
This is not a market where you can “test a high price” or skip the prep work. The competition is fierce, and buyers are pickier than ever. If your home doesn’t show well, is overpriced, or isn’t marketed correctly, it will sit. Price drops and frustrated sellers are the norm for those who aren’t adjusting to this new dynamic. Homes that are priced well, cleaned, staged, and marketed strategically are still selling and sometimes quickly. But “good enough” won’t cut it.

If you’re a buyer, now is your chance to negotiate from a place of strength. If you’re a seller, you need a solid strategy and someone who’s willing to tell you the hard truth, not just what you want to hear.
If you want to strategize based on your goals, data, and your specific property, I’d love to help.

Book a Consultation at www.calendly.com/RealtorStacie or call/text me at 720-295-9089 to get started.

Sources:
All housing data referenced is provided from REColorado (Denver Metro Area MLS provider) via InfoSparks.
https://selling-guide.fanniemae.com/sel/b7-3-03/master-property-insurance-requirements-project-developments
https://guide.freddiemac.com/app/guide/section/4703.2