The Denver real estate market has undergone significant changes over the past three years. But in April 2024, a major shift occurred—inventory levels skyrocketed, dramatically altering the balance between buyers and sellers. Since then, active inventory has remained 30-60% higher than it was a year ago, and demand has cooled due to high interest rates.
So, what does this mean for you if you're considering buying or selling in 2025? Let's dive into the latest market trends, challenges, and opportunities shaping Denver real estate today.
A New Market Reality: More Listings, Fewer Buyers
Traditionally, the Denver market followed predictable seasonal patterns. However, due to increasing interest rates and shifting consumer behavior, buyers are in no rush to make quick decisions—especially when they have more options to choose from.
Active Listings: Up 30-60% compared to last year.
Pending Transactions: Down 7.5% YoY, showing lower buyer urgency.
New Listings: Up 127.3% month-over-month from December, a 299.6% increase YoY.
What does this mean?
Sellers must price aggressively and be prepared for concessions.
Buyers have more negotiating power but need to act fast in competitive areas.
Denver’s Peak Selling Season is Moving Earlier
For years, the best time to list a home was April, but that changed in 2024. Instead of waiting, sellers rushed to market in February and March to beat competition. This shift shortened the prime selling season to just 8-9 weeks, peaking in late March instead of April.
Expect the same trend in 2025. If you're planning to sell, listing in February or early March will give you the best chance of maximizing buyer demand.
Buyer Incentives & Seller Concessions Are Now the Norm
One of the biggest changes in today’s market is the rise of seller concessions—perks like covering closing costs or offering rate buydowns to attract buyers.
61% of January closings included seller concessions.
The highest concessions were in:
Arvada (90% of homes had concessions)
225 Corridor (70-80% concessions in North Metro Denver)
Cherry Hills Village/Inglewood (76.5%)
Lowest concessions in:
Greenwood Village (33%)
Lakewood (23%)
Golden (38.5%)
The bottom line? If you’re a buyer, you have more power to negotiate than in previous years.
The Condo Market is Facing Challenges
While detached homes are seeing a shift, the condo market is struggling. Rising HOA fees, higher insurance costs, and stricter lending rules have made condos less attractive to buyers.
Inventory for attached homes is up 644% YoY
Pending condo sales are down 10.3%
52.3% of condos had to reduce their price before selling
If you’re selling a condo, pricing and presentation will be key to standing out in a competitive market.
Key Predictions for Spring 2025
Peak selling season will likely hit in March, not April.
More competition means strategic pricing is critical.
Odds of selling in early February: 46.2% (compared to 61% peak in March 2024).
Final Takeaways
Sellers: List sooner rather than later, price strategically, and be prepared to negotiate.
Buyers: You have more choices and negotiating power, but some areas are still competitive. Agents: The market is shifting—understanding micro-trends will be crucial in advising clients.
Upcoming Events
Looking for expert advice on navigating today’s real estate market? Join me for these free educational events:
📌 How to Buy a Home Class – Sign Up Here
📌 How to Sell a Home Class – Sign Up Here
📌 Monthly Mortgage Market Update with a Lender
– This month’s topic: “Understanding Rate Buydowns & Seller Concessions” – Sign Up Here
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