Market Update »

I can hardly believe that it’s that time of year again, and no, I am not talking about when everyone is rushing to their nearest coffee shop to get this year’s reusable holiday cup. I am talking about when TK Homes releases their year-end recap on Denver’s real estate market. Which, I personally think, is even more important than a reusable holiday cup, but I could be biased. Denver’s real estate market in 2025 was anything but traditional and still holds surprises even when we’re looking at it in the rearview mirror.

First, let’s talk about what Denver didn’t do, which is follow historic market trends. Often, Denver will see the market ramp up in early spring with increased sales and higher appreciation. Typically, this trend will start in early January and continue through early June. This year, we did see some strength in the market in the first two quarters of the year, but that spring momentum did not last long. In fact, we saw most of our appreciation peak in April, and then after that, values just went down and then back up slightly until almost all realized gains were lost by the year’s end. At the height of the market in 2025, the Median Close Price in Denver was $610,200, according to DMAR, which is roughly 5% appreciation from January 1st. If this is where the story ended, 5% in a single year is not a bad appreciation level for any real estate market, but unfortunately for the Denver metro area, this is not where the story ends. At the time of writing this article, the Median Close Price in the Denver metro area slid back down to $585,000, which doesn’t even result in a 1% appreciation. If I had to guess, when the numbers are in for the Median Close Price for the Denver metro area on December 31, 2025, they will be at or below the start of the year’s Median Close Price of $580,000. If I am right, then this means that home values could be down from the start of the year. However, even with this prediction for the end of the year, it’s not all bad news for Denver homeowners.

The main reason I state that this isn’t necessarily bad news for Denver homeowners is because market conditions could have resulted in a much higher loss of value in 2025. This is due to the fact that Denver saw much higher levels of inventory, which at its peak reached over 14,000 homes for sale, and homes across Denver were taking much longer to sell. With these conditions present throughout 2025, no industry expert would have been surprised if values dropped much more than they did in 2025. The main reason I believe home values remain higher is due to Denver sellers. In 2025, Denver home sellers were more likely to remove their home from the market than sell it for less than what they believed it to be worth. Due to stubborn home sellers not accepting lower offers, values remained relatively flat for most of 2025, even when all the market conditions would have warranted noticeable value depreciation.

Denver’s real estate market in 2025 was a much slower paced market, with sellers and buyers finding themselves at a standstill—with buyers not willing to pay seller’s desired prices and both parties deciding the action to take was no action at all. This resulted in flat to slightly softer pricing across the Denver metro area, with the positive takeaway being that values did not decline further. Buyers often held the better cards in the deck throughout most of 2025 when working with sellers that actually wanted or potentially needed to sell, giving better market conditions for those buyers willing to jump into the market. With 2025 nearly behind us, the only thing we’re left wondering is—what will 2026 bring for Denver’s real estate market? How will it be different than 2025, and how will it be the same? Be sure to come back after the 1^st of the year and read TK Homes’ 2026 Denver Market Prediction article to learn what we think 2026 will hold for Denver area homebuyers and sellers!

Until next year, all of us at TK Homes hope you have a great Holiday Season and New Year, we look forward to continuing to help you make your real estate goals a reality in 2026!

~ Written by TK Homes CEO/REALTOR®, Trevor Kohlhepp