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Denver Real Estate Market Update: What August 2025 Numbers Mean
Denver's August numbers are out, and the market is shifting. Active listings hit a 14-year high, prices flattened at $570K, and buyers finally have negotiating power for the first time in years.
What happened to Denver home prices in August 2025?
The median closed price in Denver metro climbed to $570,000 in August, up $5,000 from July's $565,000.
That small uptick broke the typical seasonal pattern. In most years, June is the peak and prices trail down through December. We saw that drop from June to July (a 10% slide in Denver proper, from $610K to $545K), but August flattened out and even ticked up slightly.
Denver proper recovered $15,000 in August, putting the city about 2% below last year. That's basically flat. Nothing dramatic.
Here's the catch: every neighborhood is its own market. I can pull up zip codes that are up 10-20% year-over-year and others down 10-20% in the same metro. The VA areas got hit hard, dropping from $636K to $585K before recovering a bit. If you're making a decision based on metro-wide numbers, you're missing the real story in your specific neighborhood.
Why are there so many homes for sale in Denver right now?
Active listings in Denver metro are up 18% year-over-year, sitting at the highest level since 2011.
New listings actually dropped 6% in August (8,200 came on), so it's not a flood of new sellers. The buildup is from homes sitting longer. Days on MLS keeps climbing, and that's normal seasonal behavior through December and January.
The good news for the market: 6,700 properties went under contract in August, up 11% year-over-year. Buyers who'd been sitting on the sidelines are finally moving. I think people have accepted that 6.5% interest rates might be the new normal, so they're acting instead of waiting.
The bad news: closed sales are down 7%. More deals are blowing up at inspection, appraisal, and financing, especially in the first-time buyer pool. Going under contract isn't the same as closing anymore, and sellers need to plan for that reality.
Is Denver a buyer's market or seller's market in fall 2025?
Denver sits at 4.2 months of inventory, which technically qualifies as a balanced market (the balanced range is 4 to 6 months).
It feels like an extreme buyer's market if you're a seller. Showings are running about 4.5 per listing per month, roughly one a week. The average property gets 14 showings before going under contract. Buyers have options and they're being picky.
But here's what I see daily with my clients: if a home is priced right and presents well, it still goes under contract in the first one to two weeks. I have several listings right now that hit the market and went pending almost immediately.
Last August we were at 3.8 months of supply and stayed flat before dipping. This year we're dipping faster, so some of that inventory is getting absorbed. Whether this is a correction or just the usual fall trend, we won't know for another month or two.
How should Denver sellers price their home in this market?
In a neighborhood with 10 active listings, typically only 1-2 homes sell per month, and it's almost always the lowest reasonably priced one.
Here's the math. Say everyone in your neighborhood thinks they can get $750K. A few sellers ask $800K and never sell. Four or five list at $750K hoping for the best. One or two actually need to sell and price at $700K. Which one goes under contract first? The $700K home. Every time.
The absorption rate matters more than your neighbor's list price. Look at how many buyers are actually purchasing in your specific neighborhood each month, not what other sellers are asking.
A lot of sellers are stuck in 2022 expectations. That's not reality anymore. If you've owned for 5-10 years, you're sitting on 50-100% equity. Pricing too high out of the gate just costs you money. The market punishes greedy pricing with stale listings and eventual price cuts that buyers can smell from a mile away.
Should I buy a house in Denver now or wait for prices to drop?
If you can find a home you'll keep for 5-7 years at 10-20% below the original list price and the monthly payment works, buy it now.
I used to think timing the market was possible. I was wrong. Nobody knows what happens next, including me. What I do know is the current environment is one of the rare windows where buyers can actually negotiate in Denver.
You can ask for repairs. You can offer under asking. You're not competing against 20 other buyers waiving inspections and offering $50K over list. That was the 3% interest rate world. Now we're at 6.5%, and rates are more likely to drop than climb over the next 1-2 years.
If rates drop three-quarters to a full point, you refi. Your payment resets. Meanwhile, you locked in the price during a buyer-friendly window. If rates do drop 1-2%, Denver's off to the races again at the historic 6-7% annual appreciation. Waiting for the bottom usually means missing it.
Why are more Denver home sales falling apart before closing?
Closed sales dropped 7% in August even though pending contracts rose 11%, showing a clear gap between contracts signed and deals completed.
More deals are blowing up at inspection, appraisal, and financing. The first-time buyer pool is getting hit hardest. When buyers have options, they're not afraid to walk away over a roof issue or an HVAC problem that they would've ignored two years ago.
For sellers, this means a couple of things. First, do a pre-listing inspection if you can afford it. Knowing about issues before a buyer's inspector finds them lets you price accordingly or fix things on your terms. Second, don't celebrate the contract. Stay engaged through inspection and appraisal.
For buyers, this gap is actually opportunity. You have real leverage at the inspection table that buyers haven't had since 2019. Use it. Ask for repairs or credits. Sellers who already lost one deal are much more flexible the second time around.
Video Chapters
Full Video Transcript
Full transcript from this video, organized by chapter. Click any timestamp to jump to that moment in the video.
Market Analysis Introduction
[0:00] I am about to give you the only actionable advice you need in the real estate market. We are here in Denver and a lot of my clients are in paralysis analysis mode and I'm getting the same question from a lot of people. So, I figured I'd put this together and just lay it all out there and tell you all that you need to hear so you can act on your next decision. But first, it is September, which means August numbers are out, summer months are over. We're heading into fall. And what is the real estate market actually doing out there?
[0:27] If you're listening to headlines, ah, you're kind of in trouble. So, this will absolutely help. And if you are new here, my name's Alex Sana. I've been a local Denver agent since 2010. And if you ever need anything, just call me, text me, or you can get on my weekly email here. Just scan that QR code. So, let's just get right into the numbers. Find out what in the world August did. Because if you've been with me for a little while, you know what July did.
[0:52] And July, we had one of the biggest price decreases in the Denver market. So, are we on trend? Are we bucking that trend? Well, let's just start with supply and inventory. New listings 8,200 for the month of August. That's down 6% year-over-year. So, less than last year coming onto the market. Active listings up 18%. This is a number that everybody's talking about. There are more sellers in the market than there are buyers right now. That's why we are seeing prices get uh squeezed a little bit depending on where you're at. It's very micro market by micro market. Every neighborhood is totally different uh to know what to expect, but in general, there are many more options than there have been in previous years. And in fact, this is the highest since uh 2011.
Year-over-Year Trends
[1:40] Okay, to put it into perspective. Uh you got choices as a buyer. Under contract, you know, 6,700 went under contract in August. That is up 11% year-over-year. That's a significant jump up. And if we look at the last couple of years, this is a five-year chart. We're kind of putting more properties under contract than we have the last two years. So, I think interest rates have finally settled in a little bit. People realize this might be the new normal and either we're going to act. Everybody who's been delaying finally getting off the fences a little bit with some more choices.
[2:15] Closed down 7%. This is what's interesting. This is where a little disparity happens here. Pending listings up 11%. Last year, last month they were at 6,200 compared to the year before where we were at 6,100. So about the same year-over-year under contract, but getting to the closing table is down 7%. Lots more deals are blowing up on inspection. Uh maybe appraisals, uh but in general, some more financing issues happening, especially first-time home buyer pool. So just a lot more deals are blowing up and not actually getting to the closing table which is a concern for most sellers out there. Days in MLS doing what it does every year goes up and it will continue to go up until about December January uh this year. Uh and if you're on the market right now, you know what I mean. You feel like you got one to two showings a week max. Uh and that's just what's happening. Month supply of inventory going down. Okay. So more buyers than new sellers coming on the market. some of this inventory is getting absorbed. This is what we see every single year. We're down to 4.2 months. So, we are in a balanced market still, which is a 4 to six month range of available inventory. Uh but if you're in the market again, you know, it feels like an extreme buyer market. Uh where last year we were 3.8 months in August and we kind of stayed flat and then we started to dip. We're already dipping down heavily so far. So, are we seeing a correction in this or is this just a part of the trend? We're we don't know yet. Um, all right. Showings to go under contract. We're at 14. 14 showings is quite a few showings before going under contract on average. Again, there's options out there so people can be pickier. And the showings per listing a month is 4.5. Uh, so one showing a week, a little more than one showing a week on average. Now, I will say that if you're priced appropriately and present, well, you are still going under contract in the first one to two weeks. See it all day, every single day. I got several clients in that position right now where we were priced right on the market.
Inventory and Days on Market
[4:27] Boom. Went under contract immediately. Likewise on the buy side, if it's priced appropriately, you got to act on it or someone else is going to. Now, the closed price, what you want to know, last month we went from 580 down to 565. That was out of Denver metro full scale. So, down 15,000, not a whole lot. But this month, we went up 5,000 up to 570 as the median close price. So, not out of the ordinary until you look closer.
Pricing and Median Closings
[5:00] When you look at previous years, you can see June is the peak. 570. that it trails, trails, trails, trails, trails all the way to December. Next year, June is the peak. Trails trails trails. We've got went up a little bit in October and then back down to January. I was kind of expecting the same thing to happen here. June dropped down to July, dropped down to August, but we we kind of flattened out. We even went up a little bit. Now, every city is different. So, I can pull up Denver proper, right? Because this is the entire metro area that we're looking here. And we can see we went from 610 down to 545. We had a 10% drop from June to July. Uh and then we've gone up 15,000. So we've gone up a few percent.
[5:43] So we're about flat year-over-year. Minus 2%. No big deal. Nothing to write home about. And every city is going to be different. I know our VA got uh hit pretty bad last month, too. 636 all the way down to 585. Another 10% drop. And then they ticked up a little bit. So, just kind of interesting things happening out there. So, what do you do with this information? Well, you know, we're not we're not out of the ordinary for things that are going on.
Seller Strategy Advice
[6:12] Yeah, we're kind of in a little bit of a stalemate. Sellers aren't happy because they're not getting premium prices anymore. People are still stuck in 2022. And that's just not the reality. If you want to sell, what's going to happen is you're going to have 10 other sellers in your neighborhood and you've got, you know, two or three of them that are pie in the sky numbers just never going to get it. Then you've got a good handful, four, five, six that are like trying to be reasonable, but they still want as much as they can. And then you're going to have one or two that need to sell, right? And let's just pretend for a second that all the houses are created equal in this neighborhood. Well, what's going to happen is if let's say everybody thinks they should be able to get 750, right? You got a few that are trying to ask for 800, they're never going to get it. 750 is occasionally once a month one of them goes under contract because it looks really nice and then you got one that's priced at 700. Which one's going to sell first?
[7:05] The one is 700 and then couple months go by and someone else needs to sell their property and so they come up and they maybe they listed 700 as well. Maybe they listed 675 because it needs more work. then boom, that's the one to go again. So, the absorption rate is something you really need to look at in the neighborhoods if you're on the buy side, if you're on the sell side, to kind of determine how many buyers are actually in this neighborhood every single month. And as a buyer, how can I position myself to get the best deal?
Buyer Positioning Tips
[7:35] And as a seller, how can you position yourself to be the next one that's going to sell? Might not be the one the answers you want to hear as a seller, but that's just the reality of the market that we're in right now. We are balanced. We have had such a big runup over the last 10 years that you've got 50 to 100% in equity sitting there. And if you blow it coming out of the gates with pricing it too high, all you're doing is losing money at the end of the day. Uh so what is the big advice that I want to give you right now? because I've got a number of clients sitting with paralysis analysis, not knowing what to do, wanting to time the market, which I will tell you, I thought could be a thing for a long time. And I am wrong.
[8:19] I'm I'm wrong all the time in this business, right? I just look at the data and I act accordingly uh to what we're doing investing wise in this market and how I advise clients. And there's really only one piece of advice that you need and it will it will guide all your decisions from here on out. Uh we're in a period of time right now where you can actually get a deal on a house, someone that listed for 1.2 million and you might be able to get it for 1.05, 1.1, 1 million, you know, depending on what the competition is looking like out there.
[8:55] That's a very real possibility. 10, 15, 20% below their original ask. that would be considered a deal for the last 15 years. Okay? Um if if you are okay with that house for the next 5 to seven years and its current monthly payment, act on it. Don't wait. Don't think that, hey, we're going to dip another 10, 15, 20%. That might be true, but maybe it's not in your specific neighborhood. Because I can still show you neighborhoods in Denver that are up 10, 15, 20%. Year overyear in 2025 and I can show you other neighborhoods that are down 10, 15, 20%. You will never be able to time the market, right?
Market Opportunities and Deals
[9:39] Ask Warren Buffett. He just said he'd be buying the same stocks he is today as if we were in a 100% recession or if he knew for a 100% guarantee that we were going to be going into a recession because he's in it for the long term. So if you're trying to just get a deal and then get an instant 10 15 20% over the next couple years like no one knows what's going to happen and try not to pay attention to people who think they know what's going to happen. Uh all we know is what we're in right now and that is an environment where you as a buyer can actually compete, can actually negotiate, can actually ask for repairs and not compete against 20, 30 other buyers offering 25, 50, 100 grand over asking price. So what environment would you rather be in? One where interest rates are higher right now, 6 and a half% roughly. um and they're more likely to go down than they are to go up in the next 1 to two years. Uh and or would you rather be in an environment where interest rates were at 3% and you had to offer 50 grand over just to get the property? You know, there's no easy answer. Uh and so you might have to suck it up for now and have a little bit higher monthly payment. But here's the thing. Rates drop 3/4 to 1%.
[10:59] Refi the property, right? refi it, get your new payment, and be in it for a reasonable price here. Because if interest rates do drop 1 to 2% over the next year or two, like we're going to be off to the races again, gaining 6 7% which is the historic average for the Denver metro area. Now, again, if you have any questions, you know, just feel free reach out, call me, text me, scan this QR code. Uh, and if you are wondering where to move to, if you're looking at the Denver area, I put together this video which talks about some of the best places that you could possibly live in the Denver metro Yeah.
Frequently Asked Questions
What is the median home price in Denver right now?
The median closed price across Denver metro was $570,000 in August 2025, up $5,000 from July. Denver proper specifically came in at $560,000, about 2% below last year. Prices vary significantly by neighborhood, with some zip codes up 10-20% year-over-year and others down by the same amount.
How many months of housing inventory does Denver have?
Denver metro has 4.2 months of inventory as of August 2025, which technically falls within the balanced market range of 4-6 months. Last August we were at 3.8 months. Despite the balanced classification, it feels like a buyer's market because showings have slowed and buyers have many more options than recent years.
Are Denver home prices going to drop in 2025?
Some neighborhoods are already down 10-20% from peak, while others are up 10-20%. Metro-wide prices have flattened rather than crashed. Whether further drops happen depends on interest rates, inventory absorption, and the local economy. Nobody can predict the bottom accurately, so basing decisions on timing the market is risky.
What are current interest rates doing to Denver buyers?
Mortgage rates sit around 6.5%, which is keeping some buyers sidelined but also creating negotiating room. Rates are more likely to drop than rise over the next 1-2 years according to most economists. If you buy now and rates drop three-quarters to a full point, refinancing resets your payment to a lower number.
Is now a good time to sell a house in Denver?
It depends on your pricing strategy and your reason for selling. Active listings are at the highest level since 2011, so you're competing with more inventory. Homes priced correctly still go under contract in 1-2 weeks. Overpricing means sitting on market, accumulating days, and eventually selling for less than if you'd priced right initially.
How much can buyers negotiate off list price in Denver?
Buyers are routinely getting 10-20% off original list price on homes that have sat on market. A property listed at $1.2 million might close at $1.0-$1.1 million depending on competition and condition. Homes priced right from day one still see less negotiation, often selling at or near asking within the first two weeks.
Why are more Denver real estate deals falling through?
Closed sales dropped 7% in August while pending contracts rose 11%, meaning more deals collapse between contract and closing. Inspection issues, appraisal gaps, and financing problems (especially among first-time buyers) are the main culprits. Buyers have options now, so they're willing to walk away from problem properties instead of pushing through.
Thinking about buying or selling in Denver?
Call or text (303) 552-4804 for a no-pressure conversation about your situation.
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