August Denver Market Update

With back-to-school events scheduled for later this month, summer is quickly wrapping up across the Denver metro area. Looking at Denver’s current market conditions, buyers have already checked out of the summer market and are now focusing on other activities.

Denver’s real estate market struggled this summer to meet seller’s expectations with picky buyers that were slow to make offers, slow to schedule showings and once under contract, demanded many items be fixed or even updated during inspections. Values on paper appeared to have positive appreciation year to date, but many homeowners could not capitalize on these increased values when selling. At TK Homes, we believe the apparent appreciation on paper is driven by Denver’s higher-priced homes—those listed above $1,000,000—which have seen more offers and closings than lower-priced properties, ultimately pushing the median closed price higher across the area. It’s this median closed price stat that many industry experts use to determine the overall appreciation for Denver area homes.

Many experts will say that the interest rate remaining high is the main reason for the low appreciation and rising inventory levels. However, recently, interest rates have ticked down some with some lenders stating that rates are near their lowest point since early 2024. With this new lower interest rate, homes are still struggling to obtain showings and, more importantly, offers. This could be a sign that we are going to need to see even lower rates or that the average buyer hasn’t caught on that rates are down. Only time will tell if these lower interest rates help increase buyer demand and get homes sitting on the market under contract.

In the meantime, at TK Homes, we’re watching the market closely to see what the final months of 2025 will bring for homebuyers and sellers. Historically, the market slows through August and then has some increased demand from buyers in September and October. However, the increased demand may not be enough to prevent depreciation across the Denver metro area for the remaining months of the year. With our low appreciation seen year to date, it’s possible that home values at the end of 2025 could be less than they were at the beginning of the year.

As always, TK Homes will continue to monitor the market and provide expert advice to both home sellers and buyers looking to make a change in their housing situation. Like with every market, there are pros and cons to buying and selling. At TK Homes we will take the time to educate you on both the pros and cons of making a move in today’s market to ensure that you have the tools and information to make your real estate goals a realty. Contact a TK Homes agent today and let’s talk about if making a move makes sense for you in 2025.

~ Written by CEO/REALTOR® Trevor Kohlhepp