With inventory at its highest level since 2011, the Denver metro real estate market is experiencing a significant shift.
Despite the increased availability, prices remain stable, and closed sales dropped, according to the June report from the Denver Metro Association of Realtors.
“At the beginning of the year, two questions were on everyone’s mind: When would interest rates drop, and how high would inventory rise? Now at the mid-year mark, rates remain frustratingly high for borrowers and active inventory in the Denver Metro has surpassed the 14,000-mark—its highest level since 2011,” said DMAR market trends committee member Michelle Schwinghammer with West + Main.
Active listings last month totaled 14,007, up 3% from May’s 13,599 and 37% from the same month the previous year, when they stood at 10,214. Historically, active listings increase by an average of 12% from May to June.
The average number of active listings from June 1985 to 2024 is 15,125. The record high was 31,900 listings in June 2006, and the record low was 3,122 in 2021.
Despite the inventory increase, closed sales of 3,864 in June were down 10% from May’s 4,274 and 2% from June 2024’s 3,929.
June’s median home sale price of $610,200 is up 2% from last month and 2% from the same period last year when the median price was $600,000.
Days on market continue to increase, up 12% to 37 in June from 33 in May and up 32% from 28 days last year.
Market analysis
“We do not have a bad market; it’s a different market,” said Amanda Snitker, chair of the DMAR Market Trends Committee.
“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.”
Sellers can’t afford to price homes based on last year’s peak values or early 2025 expectations, Snitker said, because buyers are cost-conscious and quick to dismiss unprepared or overpriced listings.
However, buyers who wait for the “perfect” interest rate or timing can also lose money, as desirable homes still sell quickly, she said.
A mid-year review
Steve Danyliw, past chair of the DMAR market trends committee, analyzed the first six months of the year, examining migration trends, mortgage rates, sales expectations, prices, inventory, and market outlook.
Here’s what he determined:
Colorado migration trends: More people are leaving Colorado than moving in, with a net outbound migration of nearly 11 for every 10 arrivals, driven by affordability, job changes, and lifestyle shifts.
Mortgage rates: Initially forecasted rates between 6.25% and 7% were briefly exceeded, but recent trends suggest a softening, with a current forecast of 6.4-6.8% by year-end.
Sales expectations: Detached home sales are expected to decline by 2% or experience a modest 1% increase, while attached sales are projected to decrease between 7% and 10%. There’s potential for increased buyer activity if mortgage rates drop further.
Home prices: Denver’s median home prices increased by 1.5%, aligning with a forecasted growth range of 0-3%. Price appreciation is expected to remain steady and modest.
Inventory: The surprising 14.5% increase in new listings year-over-year can be attributed to lifestyle changes and job transitions, despite many homeowners having locked in lower mortgage rates.
Market outlook: The second half of 2025 may be more favorable, with expected rate declines and balanced price levels, though affordability will continue to pose challenges for buyers.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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