Denver Housing Market Update — September 2025

Denver Housing Market Update — September 2025

Question: What’s happening in the Denver Metro housing market right now?
Answer: As of September 2025, Denver’s housing market is stabilizing after a summer slowdown, with inventory gradually improving, price growth steadying, and buyers showing renewed confidence as mortgage rates hold in the mid-6s.

Market Snapshot

According to the latest data from the Denver Metro Association of Realtors (DMAR), September 2025 saw a continued normalization of the market — balancing between the competitive frenzy of recent years and the sluggish pace seen at the start of 2024.

Here’s a quick overview of key metro-level stats:

Metric September 2025 Month-Over-Month Year-Over-Year
Active Listings ~9,300 ▲ 4% ▲ 18%
New Listings ~4,700 ▼ 6% ▲ 2%
Pending Sales ~3,800 ▼ 8% ▼ 4%
Closed Sales ~3,600 ▼ 9% ▼ 7%
Median Sale Price $595,000 ▼ 1% ▲ 2%
Average Days on Market 29 ▲ 3 days ▲ 7 days

Source: DMAR Market Trends Report, September 2025

Interpreting the Numbers

1. Inventory Is Finally Loosening

After years of record-low supply, active listings are up nearly 20% year-over-year, offering more options for buyers across Denver, Arapahoe, and Douglas counties. The increased inventory hasn’t led to price declines, but it’s helping cool competition and reduce bidding wars.

The balance point — often described as a “neutral market” — hovers around 4 to 6 months of supply. As of September, Denver is sitting near 2.3 months, up from 1.6 a year ago. That’s a meaningful improvement, but still a lean market by national standards.

2. Prices Are Leveling Out

The median sale price dipped just 1% month-over-month to $595,000, signaling seasonal softening rather than systemic weakness. Year-over-year, prices are still up 2%, with many submarkets (like Littleton, Centennial, and Parker) maintaining stronger appreciation due to limited new supply.

Luxury homes ($1M+) are seeing longer days on market — averaging around 47 days — as higher borrowing costs temper buyer urgency in that segment.

3. Buyer Demand Is Cooling but Not Collapsing

Pending and closed sales were both down modestly from August, reflecting typical late-summer slowdown and the lingering impact of affordability constraints. However, steady showing activity and improving buyer sentiment suggest a more stable fall season compared to 2024.

Buyers are now negotiating modest concessions again — including inspection credits and rate buydowns — but sellers who price accurately are still closing quickly. Well-prepped homes under $650K continue to sell within two weeks in most Denver suburbs.

4. Mortgage Rates Are Flat but Manageable

Mortgage rates in the 6.5%–6.8% range remain a drag on affordability, yet buyers and sellers alike appear to be adapting. With no sharp rate spikes or drops in recent months, consumer confidence is improving slightly.

Analysts expect the Fed to maintain its current stance through Q4, with potential rate relief in early 2026 if inflation trends stay positive. For Denver homeowners, that means a window of stability before the next potential uptick in buyer demand.

5. Seasonal Trends Are Back

For the first time since 2020, the Denver market is behaving like a “normal” seasonal cycle. Listings slow as school resumes, and buyers become more selective as the holidays approach. Expect October and November to remain calm — with better opportunities for buyers looking to avoid the spring rush.

Local Expert Perspective

“Denver’s market right now is healthy — not hot, not cold,” says Jacob Stark, local REALTOR® with 8z Real Estate. “Inventory is finally catching up, and both buyers and sellers are getting used to this ‘new normal.’ For sellers, pricing right matters more than ever. For buyers, patience and preparation are finally paying off.”

That balance is precisely what many experts hoped for in 2025 — a market where data, not emotion, drives the decisions.

What This Means for You

Buyers: You have more choices and less competition than in previous years, but rates still require strategic budgeting. Focus on homes that have been on the market for 30+ days — negotiation power is highest there.

Sellers: Listings that are clean, staged, and priced within 2% of comparable sales are still moving quickly. If you’re upsizing or relocating, this fall offers a balanced playing field to both sell and buy.

Investors: Rent demand remains strong across metro Denver, especially in submarkets near major job hubs like DTC, Englewood, and Arvada. Appreciation is modest but steady — ideal for long-term holds.

Outlook for Q4 2025

Expect October and November to continue the trend of steady, data-driven moderation.
If mortgage rates stay under 7%, buyer activity should remain healthy through the holidays, setting up a potentially strong spring 2026.

Seasonal slowdowns aside, Denver’s fundamentals — job growth, lifestyle appeal, and limited new construction — continue to support long-term stability.

Final Thoughts

The Denver Metro housing market in September 2025 is best described as balanced, resilient, and refreshingly predictable. After several years of volatility, both buyers and sellers can now plan moves with greater confidence.

Whether you’re tracking trends or preparing for your next move, staying informed is key — and understanding the “why” behind the data makes all the difference.

Thinking About Your Next Move in Denver?

For more detailed insights on your specific neighborhood or price point, connect with Jacob Stark at 8z Real Estate — your trusted local expert helping families buy and sell confidently across the South Denver suburbs.
Visit Selling303.com
or call today to discuss your next move.