Denver Housing Market: Trends and Forecast 2025-2026

If you're wondering about the current Denver housing market trends, you're in the right place. As of June 2025, the Denver metro area is seeing a steady market with increased buyer activity, a slight rise in home prices, and a significant surge in available inventory. This means that while sellers who price their homes accurately can still succeed, buyers are gaining more opportunities and flexibility. Let's dive into the specifics.

Current Denver Housing Market Trends in 2025:

Home Sales

How are homes selling in Denver right now? Let's take a look at the numbers, according to RE Colorado.

• Closed Listings (June 2025): 4,004 – Up 5% year-over-year.
• Pending Listings (June 2025): 4,058 – Up 6% year-over-year.

This tells us that even though we're seeing the typical seasonal cooling, buyer activity remains strong. More homes are being bought and are under contract compared to last year.

Comparison with National Home Sales in the U.S. in May 2025

Nationally, things are a little different. According to the National Association of Realtors (NAR), home sales in the US decreased by 0.7% year-over-year in May 2025. This makes the Denver market's 5% increase in closed listings quite notable, suggesting Denver is outperforming the national average.

Home Prices

Everyone wants to know: are home prices still climbing in Denver?

• Median Closed Price (June 2025): $609,925 – Up 2% year-over-year.
• Average Closed Price (June 2025): $732,660

This indicates that while prices aren't skyrocketing, they are still appreciating, albeit modestly. Denver remains a desirable place to live, keeping demand relatively high.

Are Home Prices Dropping in Denver?

While the data from June 2025 shows a 2% increase in the median closed price year-over-year in the Denver metro, it's important to note that the housing market is always shifting. We're not seeing a significant drop, but the increased inventory could put downward pressure on prices in the coming months, especially if mortgage rates remain elevated.

Comparison with the National Median Price in the U.S.

The national median price in May 2025 was $422,800, which is a 1.3% increase year-over-year. Denver's median price of $609,925 is significantly higher, reflecting the area's strong economy, desirable lifestyle, and limited housing supply compared to other regions.

Housing Supply in Denver

One of the biggest stories in the Denver market right now is the increase in housing supply.

• New Listings (June 2025): 5,894 – Up 3% year-over-year, but down 16% month-over-month.
• Active Listings (June 2025): 13,790 – Up 34% year-over-year.
• Weeks of Inventory: 15

The surge in active listings is giving buyers more choices and creating more competition among sellers. The 3% increase in new listings compared to June 2024 indicates that sellers are trying to capitalize on the market, but the 16% drop compared to last month suggests a seasonal slowdown.

Is Denver a Buyer's or Seller's Housing Market?

With 15 weeks of inventory, the Denver market is moving towards a more balanced state. Generally, a balanced market has between four and six months of supply. While 15 weeks isn't quite there, it's a significant improvement for buyers compared to the extremely tight seller's market we've seen in recent years. Buyers now have more leverage, time to negotiate, and choices.

Market Trends

Several key trends are shaping the current Denver housing market.

• Homes are staying on the market longer: The median days in MLS (Multiple Listing Service) is 19, which is 6 days longer than last year. This means sellers need to be patient and price their homes competitively.
• List-to-closed price ratio is decreasing: The original list to closed price ratio dipped to 98.1%, down 1% from last year. Buyers have slightly more room to negotiate.
• Rental market showing mixed signals: While properties leased through REcolorado increased 19% year-over-year, the median leased price dropped 3%. This could indicate a shift in rental demand or increased competition in the rental market.

Impact of High Mortgage Rates

Mortgage rates play a huge role in the housing market, affecting both buyers and sellers. As of July 3, 2025, the national average for a 30-year fixed mortgage rate is around 6.67%, and the 15-year FRM is about 5.8%, according to Freddie Mac.

These rates are still relatively high compared to the historically low rates we saw a few years ago, which impacts affordability for many buyers. However, it's worth noting that rates have been fluctuating within a narrow range since mid-April, providing some stability.

Many forecasts predict the 30-year FRM rate to end 2025 between 6.0% and 6.5%. This stability could encourage more sellers to enter the market, further increasing inventory and providing buyers with more options.

Here’s a quick recap of national mortgage rates:

Mortgage Type	Rate (July 3, 2025)
30-Year Fixed	6.67%
15-Year Fixed	5.8%

What This Means for Buyers and Sellers in Denver

• For Buyers: This is a better market than it has been in recent years. You have more choices, more time to make decisions, and potentially more room to negotiate. However, don't wait too long, as prices are still appreciating, and competition remains strong for desirable properties.
• For Sellers: It's crucial to price your home competitively and set realistic expectations. Homes are staying on the market longer, so be prepared for a potentially longer sales process. Work with a real estate agent who understands the current market dynamics.

The Denver Metro Rental Market

It's also important to keep an eye on the rental market. According to the REcolorado data, rental activity is up, but pricing is mixed.

• 368 properties leased through REcolorado, a 19% increase from last year.
• Median leased price dropped 3%.
• Price per bedroom fell 2%.
• Price per square foot rose 4%, suggesting stronger demand for smaller or more efficient units.
• Days in the MLS increased slightly to 24, up three days year over year.

This suggests that while demand for rentals is strong, renters are becoming more price-sensitive and are looking for smaller, more efficient units.

In summary, the Denver housing market in June 2025 is showing signs of stabilization and a shift towards a more balanced market. While sellers need to be strategic and price their homes competitively, buyers are gaining more opportunities and flexibility.

Denver Housing Market Forecast 2025: What's Coming Next?

You're probably wondering about the Denver housing market forecast. Here's the short answer: Experts currently predict a slight decrease in home values in the near future. However, the overall picture for 2025 and beyond involves a complex mix of factors, so let's dig into the details.

As of today, the average home value in Denver-Aurora-Lakewood is around $592,884, reflecting a decrease of 1.8% over the past year. Homes are going under contract in about 13 days While this gives a good general idea, it isn't enough, and we'll dig in more.

Zillow provides specific forecasts for the Denver metro area, and the outlook suggests a modest depreciation over the next year. According to their latest data (as of May 31, 2025), here's what they project:

Timeframe	Predicted Change in Home Value
June 2025	-0.6%
August 2025	-1.7%
May 2025 – May 2026 (1-Year)	-3.3%

This suggests we're looking at a small, steady decline in property values in the coming months. It's not a drastic drop, but something to keep in mind whether you are buying or selling.

How Does Denver Stack Up Against Other Colorado Cities?

It's always helpful to see how Denver's forecast compares to other areas in Colorado. Afterall, location is everything! Here’s a snapshot of forecasts for other major Colorado cities:

City	Predicted Change by June 2025	Predicted Change by August 2025	Predicted Change by May 2026
Colorado Springs	-0.5%	-1.3%	-3.0%
Fort Collins	-0.4%	-1.1%	-2.5%
Boulder	-0.8%	-2.1%	-4.0%
Greeley	-0.3%	-0.9%	-2.7%
Pueblo	-0.1%	-0.8%	-1.6%
Grand Junction	0.1%	-0.2%	0.2%

As you can see, most of these cities are also expected to see a decrease in home values, with Boulder seeing the biggest drop, and Grand Junction actually seeing a bit of growth! However, overall, it makes sense, since these cities are impacted by the same macroeconomic factors.

Nationwide Housing Market Trends: A Broader Perspective

To get a better sense of where Denver is headed, let's look at the national picture. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), has a cautiously optimistic outlook, stating “brighter days may be on the horizon.” Here's what he predicts:

• Existing Home Sales: Up 6% in 2025 and 11% in 2026.
• New Home Sales: Up 10% in 2025 and 5% in 2026.
• Median Home Prices: Up 3% in 2025 and 4% in 2026.
• Mortgage Rates: Average 6.4% in the second half of 2025, dropping to 6.1% in 2026.

While the national projections indicate growth, Denver's experiencing a slight decline, suggesting regional factors are at play. It can be because of high rates of construction in Denver recently, or people moving away from the city.

So, Will Denver Home Prices Drop? A Crash is Unlikely.

The current data suggests a cooling, not a crash. While Zillow projects a price decrease, these are modest declines. A full-blown housing crash is unlikely because the economy is doing good, and Denver is an attractive place to live.

A Look Ahead to 2026

Looking further ahead, to 2026, it's challenging to give a perfect prediction. If national trends hold true, but the Denver economy stays strong, we could see the Denver housing market begin to recover and stabilize, following the decline in 2025. It's all highly dependent on interest rates, population growth, and the overall economic health of the region.