It’s hard to believe that half of 2025 is officially behind us and that we have already celebrated 4th of July. With half of the year already over, we can confidentially say that 2025 has been a different real estate market than we’ve seen most recently across the Denver metro area. Historically, Denver sees a bump in real estate sales in the late spring and early summer, and this year instead of increased sales, we just saw an increase of homes for sale. This seems to only be rising with each passing month.

According to the Denver Metro Association of REALTORS®, we started the month of July with just over 14,000 attached and detached homes for sale across the Denver metro area. This is up nearly 100% from January of this year when there was a total of 7,688 homes for sale, but how are the higher inventory levels affecting home sellers? 

Answering this question, in my opinion is not an easy answer if you simply look at the data, specifically the data of homes that have recently closed. In the same Instagram post shared above regarding the inventory levels across the Denver metro area, you will see that it claims home values were up 1.7% in June. This is the opposite of what one would expect to see given continually rising inventory levels, thousands of homes reducing their prices each week, and an ever-growing number of days on market. So how is it that despite these facts regarding home selling conditions in Denver, the most recent data shows an increased in value of 1.7%?

I believe the reason for this is due to the homes we are seeing sell more frequently right now across the Denver metro area. The homes that are selling more frequently are higher priced homes. Homes that are priced lower, especially homes priced below $800,000 are taking much longer to sell and sitting on the market. Therefore, if we are seeing these higher priced homes sell, it will naturally push up the median sold price for these stats. However, if you were to remove closed homes that sold above $800,000, I think you’d see a much different stat that would show home values are down for homes in this price point across Denver. It is also important to mention that the most recent trend is showing that even the higher priced homes above $1 million are starting to feel the effects of the market similar to homes priced below $1 million. Due to this, it is my opinion that we will likely see the median close price next month reflect a loss in value across the board (Be sure to check back with us in August to see if our suspicion was correct or not with our August Market Update).

So what does this mean for home sellers and buyers? The Denver area home seller is going to be the party that feels the pain of the current market conditions the most. With high inventory levels, buyers now have more options than in recent years. This means that showings will be fewer and offers even fewer still. Condition of the home is going to come into play a lot more than any recent seller has experienced, and it is going to take a lot longer to attract a buyer for your home. This is especially true for a home that is priced too high, in need of updating, or has higher than average property taxes or HOA fees. Sellers that need to sell quickly will need to be willing to price their home appropriately for the new market and be prepared to potentially have to put more money into the home to get it ready for today’s Denver area homebuyers.

Buyers might feel like they have the upper hand in today’s market, and they definitely do, to a point. However, buyers are going to feel frustrated when they run into sellers that are unwilling to accept the new market conditions and hold tight on trying to sell their house for what they believe it’s worth. Although, in many cases a seller should be grateful they have attracted a buyer in today’s market, the reality is they are often offended by what a buyer feels they should be paying today. This makes it tricky for a buyer to navigate the market to ensure they do not overpay for a home, yet don’t lose out on a property they really love because they aren’t willing to meet the seller’s terms.

Overall, Denver’s market is in new territory, with buyers holding most of the cards due to higher inventory levels, an increasing number of price reductions, and more options than in recent years. Buyers are still learning what this means when it comes to negotiating a purchase, and sellers are struggling to accept that the roles have reversed with buyers. This means that more than ever, it is important for a homebuyer or seller to work with an agent that understands the current market conditions and is able to best guide them through a successful transaction, whether that be selling or buying.

Thankfully, if you’ve made it this far in our Denver Market Update, you’ve got having a trusted agent on your side already covered! TK Homes is constantly monitoring the market, testing new marketing methods to keep up with the rapidly changing market conditions, and working with buyers and sellers to ensure they get the best deal on their sale or purchase! Contact a TK Homes agent today and let’s talk about how today’s market affects your real estate goals!

~ Written by CEO/REALTOR® Trevor Kohlhepp