It is officially June, which means we are officially in the summer months. Summer vacations are in full swing, flowers are in full bloom, weekend trips are being planned in the high country and the Denver real estate market is in full swing. All these statements are true, expect maybe the last one regarding Denver’s real estate market.

Markets across the United States are reporting that there are more sellers in the market than buyers, with Redfin stating that there are nearly 500,000 more sellers than buyers. According to Redfin, this is the biggest gap between buyers and sellers since they started recording this stat in 2013. When reviewing current inventory levels in Denver, Denver is not an exception to this current trend. In fact, this has been the trend for most of 2025, with often double the number of new homes coming on the market versus going under contract each week. But what does this mean for Denver home sellers and buyers?

Most experts that discuss this new trend of more sellers than buyers agree that this trend should cause home values to come down. However, right now in Denver, values have not been following this common theory. In fact, when looking at year-to-date values, Denver area home values are up just over 4%. It is important to note though that this increased value was achieved almost entirely in the first two months of the year, and since, we’ve seen home values remain basically flat. So, how is it that with increased inventory, homes taking longer to sell, and many homes making price reductions, we haven’t seen home values trend down? There are two theories that may explain this.

The first theory is that many home sellers are remaining stubborn and unwilling to accept their home’s value might be lower than they want to sell their home for. This is causing the home to remain on the open market and show as for sale versus sold, and current home value trends are determined solely on sold homes. So even though these homes’ values have, in fact, come down, they are not being reported as such because they are not selling and therefore showing the depreciation the market has witnessed. If sellers were to become more willing to accept their home’s actual value and reduce their asking price or accept a lower purchase price, then these homes would start turning into sold homes. If this happened, we’d likely see a decline in Denver’s home values across the board.

Theory two is that the homes that are frequently selling today are homes that offer unique features, whether they are higher-end remodels, have views or fantastic locations. These homes will always remain in higher demand simply due to there being fewer of them on the market. Due to this, their values are more protected and commonly sell for higher prices. If these are the most common homes sold right now, they can skew the data upward when looking at overall sales trends and statistics on sold homes across Denver.

 
Whatever the reason for values remaining flat across Denver, there are a few things Denver home sellers and buyers need to understand. First, sellers need to be willing to accept the 2025 market conditions. This means they will have more competition and are fighting for the same picky homebuyers, it will take longer for their home to sell, and their home’s value might not be as high as they believe. You can learn more about what Sellers need to understand when selling their home in 2025 in our recent blog, “The Current Market and What It Means for Sellers.”

For buyers, this could be an opportunity to purchase a home in a buying environment that homebuyers have been asking for the past several years. Most buyers will find they have time to look at many homes, including seeing the same home multiple times before making a buying decision. Buyers now have the ability to negotiate once they do decide to make an offer, including on terms such as purchase price, seller concessions for rate buydowns, closing costs and repairs they’d like the seller to make. If you’re buying a Denver area home and plan on being there for the next 3-5 years minimum, now could be a great time to jump in the market and have sellers begging you to purchase versus having to make offer after offer over list to only be outbid by another buyer.

Denver’s real estate market is ever changing and how it looks today is very different than how it looked this time last year and previous years. Working with a real estate agent that understands today’s market conditions is more important than ever. If you’re a homeowner or buyer looking to make a change in your Denver area housing situation, contact a TK Homes agent today and learn why Denver area homebuyers and sellers trust TK Homes to help them make their real estate goals a reality.

~ Written by CEO/REALTOR® Trevor Kohlhepp