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Denver Housing Market Update – July 2025:
More $1M+ places than under $375k
Watch the full video for the detailed breakdown:
The Denver housing market isn’t following its usual summer playbook this year. While we typically expect more listings and slower buyer activity heading into the second half of the year, that pattern isn’t holding up as clearly in 2025. If you’re planning to buy or sell in the Denver Metro, here’s a clear, no-nonsense look at what’s really happening right now and what it means for you.
Key Market Stats: Inventory, Pricing & Pace
- Median home price in the 7-county Denver metro increased to $605,000
- Average sold price for June 2025 landed at $730,000
- Average days on market: 36 (and climbing)
- New listings down by about 1,300 compared to May
- Pending contracts only slightly down (~75 fewer), indicating stable buyer demand
So, we’re not seeing the typical June flood of listings, but demand isn’t slowing down much yet either. That balance is keeping the months of supply relatively flat.
Detached Homes vs. Attached Properties: A Tale of Two Markets
When you separate single-family homes from condos and townhomes, the difference is dramatic:
- Detached single-family homes: Incremental price growth, holding their value, steady buyer demand
- Attached properties: Struggling. Average pricing is essentially flat compared to late 2021/early 2022
Buyers are bypassing condos and townhomes in favor of stretching slightly for single-family homes. Why? The monthly payment difference just isn’t worth settling for less space, more shared walls, and higher HOA fees.
The Inventory Crunch: What’s (Not) Hitting the Market
Inventory didn’t rise like it normally does in June. For example:
- Attached new listings dropped by nearly 500 (from ~1,800 in May to ~1,300 in June)
- Buyer demand stayed almost flat or slightly increased in some segments
This means the months of supply for condos and townhomes even fell slightly, but not because they’re selling quickly. Fewer new listings and slightly better pending numbers explain the shift.
Showings: How Active Is the Market?
Condos/townhomes: ~3 showings/month (11 showings to pending)
Single-family homes: ~5 showings/month (14 showings to pending)
If your listing is well-presented, competitively priced, and in good condition, you can still attract attention, especially if it’s a single-family home.
The Price Point Shift: Under $375K vs. Over $1M
Looking back a decade:
In July 2015, there were 3,800+ homes sold under $375K and just 114 homes sold over $1M
In June 2025, there were only 439 homes under $375K, but over 500 homes sold for more than $1M
This is one example that highlights just how much the Denver housing market has shifted toward the “luxury” tier. It’s now more common to see million-dollar homes sell than properties under $375K. Also in terms of showings, pendings, and sales, the $1M+ market is more active than the supposedly “affordable” entry-level condo/townhome market. So let’s talk about that piece…
Affordability in 2025 vs. 2021: Same Price, Much Higher Payment
Let’s break down a $300,000 condo purchase in both time periods:
In 2021:
(Assuming the follow approximate numbers)
- Interest rate: 3%
- Taxes: $1,200
- Insurance: $750
- HOA: $350
- Total monthly payment: $1,838
That SAME PLACE in 2025:
- Interest rate: 7%
- Taxes: $1,600
- Insurance: $1,200
- HOA: $500
- Total monthly payment: $2,753
That’s nearly a 50% increase in monthly housing cost for the same place at the same purchase price! But during that same timeframe, median household income in Colorado only rose 16%* (from ~$82K to ~$95K). That mismatch between payment growth and income growth is a major reason Denver housing affordability feels so painful right now. To achieve the same payment as in 2021, the purchase price would need to drop from $300,000 to about $163,000! 🤯
Why Condos Are So Hard to Sell Right Now
Several major challenges are plaguing the condo and townhome segment:
- Skyrocketing HOA fees due to rising insurance premiums
- Difficulty getting lender-approved insurance coverage for many buildings/complexes
- Special assessments or high deductibles causing financing complications
These issues are pushing many buyers to skip “starter” properties entirely in favor of single-family homes, even if it means stretching their budgets. Many are choosing to wait on buying altogether and just keep renting.
So, What Can Buyers Do?
If you’re feeling stuck between high prices and high rates, consider a temporary interest rate buydown:
- Ask your agent if you can negotiate with the seller to buy your rate down or offer closing costs credits
- A 3-2-1 buydown can ease payments for the first few years if you plan to re-fi or potentially move within that time
- This strategy often makes more financial sense than a simple price cut and will save you more money each month, but IS NOT permanent
For example, instead of reducing the price from $300K to $275K, a seller-paid buydown with that same discount could save $300–$500/month in year one vs. <$40/month with just the price reduction.
It’s Not About Price Alone
At the end of the day, remember this: You don’t live in the price, you live in the payment. If you’re a buyer, focus on long-term plans, wealth-building potential, and making the numbers work now (even if temporarily) understanding the risk down the road and you’re likely situation then. If you’re a seller, it’s crucial to understand where your home fits within your neighborhood, your property type, and current buyer demand. A one-size-fits-all strategy won’t work in this market.
If you’re thinking about buying or selling in the Denver area or just want to talk through your options, I’d love to help.
📅 Book a consultation at www.calendly.com/RealtorStacie
📞 Or text/call me directly at 720-295-9089
