Are you trying to buy a home in Denver? Well, here's some good news! The Denver housing market cools, and it's actually leading the nation in price reductions. That’s right, Denver tops the list with the highest percentage of homes having their price slashed in June. This shift signals a significant change, giving buyers more leverage and a chance to breathe after years of intense competition. Let’s dive into what's behind this trend and what it means for you.

Denver Housing Market Cools: Leads the Nation in Price Reductions

What's Happening in Denver?

For the past few years, Denver has been a seller's paradise. Homes were selling above asking price, bidding wars were common, and inventory was incredibly tight. But now, things are changing. According to recent data, Denver leads the nation with a whopping 38.3% of active listings having undergone a price reduction in June.

Why is this happening?

• Affordability Ceiling: Let's be real, housing prices in Denver skyrocketed during the pandemic. While Denver has always been an expensive real estate market, salaries have had a hard time keeping up, pushing many potential buyers to their limit. As mortgage rates rise, it makes it even harder for people to afford homes, leading to less demand. I think many people are now realizing they are priced out of the market.
• Slowing Population Growth: Denver saw a huge influx of people over the past decade, especially during the pandemic as remote work became more common. However, that rapid growth is slowing down. With fewer people moving in, the demand for housing decreases.
• Increased Inventory: Compared to the pre-pandemic days, Denver has more homes available on the market. More homes on the market mean more choices for buyers, and sellers need to be more competitive to attract attention. I've seen it firsthand; homes are sitting on the market longer than they used to!

Other Cities Seeing Price Cuts

Denver isn't alone. According to Zillow's data, other cities that experienced massive growth during the pandemic are also seeing a rise in price reductions. Places like:

• Raleigh (36.4%)
• Dallas (35.5%)
• Nashville (35.5%)
• Phoenix (35.5%)

These “boomtowns” are now rebalancing as the initial surge of new residents slows down and affordability becomes a bigger issue.

A National Trend?

Absolutely! Nationally, over one in four listings saw a price cut in June, hitting 26.6%. Looking at the graph, we can see that the trend of price cuts is on the rise. That’s the highest ever for June in Zillow data.

Here's a little summary of data:

National Trend In price Cuts

Month	Percentage of listings
June, latest reporting	26.6%

Cities Seeing Biggest Jumps in Price Cuts (May to June)

Some cities are seeing a rapid increase in the number of price cuts. Here's a list:

• Kansas City (+5 percentage points)
• Buffalo (+3.9 pts)
• Indianapolis (+3.8 pts)
• Columbus (+3.3 pts)
• Minneapolis (+3.2 pts)

This rapid increase often suggests a rapidly cooling market.

Who Still Has the Upper Hand?

Of course, not every market is experiencing the same trend. According to the data I see, there are still some areas where sellers are in control due to tight inventory:

• Milwaukee (13.9% of listings with a price cut)
• New York (15.6%)
• Hartford (16.0%)
• Buffalo (18.3%)
• San Jose (22.1%)

What This Means for Buyers

So, what does all this mean if you're looking to buy a home? Here’s my take:

• More Negotiating Power: Gone are the days of automatically offering over asking price. You might actually be able to negotiate with sellers and get a better deal.
• Fewer Bidding Wars: With fewer buyers competing for each home, you're less likely to get caught up in crazy bidding wars. Thank goodness!
• More Time to Decide: You won't feel as rushed to make a decision. You can take your time to inspect homes and consider your options.
• Potential for Seller Concessions: In some markets, you might even be able to ask sellers to cover some of your closing costs or offer other incentives. This is definitely something to discuss with your realtor.

Tips for Buyers in a Cooling Market

Here's my advice as a real estate professional:

1. Get Pre-Approved: Knowing your budget and getting pre-approved for a mortgage puts you in a stronger position when you do find the right home.
2. Work with a Good Real Estate Agent: A local agent can offer valuable insights into the market and help you negotiate effectively. I can help you find one.
3. Do Your Research: Don't just jump at the first home you see. Take your time to research different neighborhoods and find a place that fits your needs and budget.
4. Don't Be Afraid to Make an Offer: With prices coming down, now is the time to make a reasonable offer on a home you love.

What This Means for Sellers

For sellers, however, the times are changing a little bit:

• Pricing is Key: You can't just throw a high price on your home and expect it to sell quickly. You need to price it competitively based on comparable sales in your area.
• Presentation Matters: Make sure your home is in top condition before you list it. Clean, declutter, and make any necessary repairs.
• Marketing is Important: Work with your agent to create a strong marketing plan that will attract potential buyers to your home. I believe that having a good plan is critical.
• Be Open to Negotiation: Be prepared to negotiate with buyers. You might not get the full asking price, but you can still get a fair price for your home.

My Prediction

I think we'll see more price cuts in the months ahead. While mortgage rates and home prices aren't expected to drastically improve, the market will continue to rebalance, giving buyers more opportunities.

The Bottom Line: The Denver housing market cools, offering a much-needed break for buyers. While it's not a fire sale just yet, the shift in the market is undeniable. If you're a buyer, now is the time to get prepared and start your search. If you're a seller, adjust your expectations and be ready to compete. The market is changing, and those who adapt will be the most successful.

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.