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, according to the Denver Metro Association of Realtors.
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 re-ductions. 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. In June, the median days in MLS 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. Buyers and sellers who began the year operating on outdated assumptions- expecting lower interest rates, surging competition or guaranteed appreciation are now confronting a market that demands flexibility and realism.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. In 2025, we are all navigating the market we have, not the one we expected. Real-time awareness is the most valuable asset buyers and sellers have
Learn more about the market from the Denver Metro Association of Realtors.
Keep reading for an In-depth breakdown on properties sold for $1 million or more by West + Main Agent Michelle Schwinghammer.
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.
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