November Denver Market Update

It is hard to believe that I am writing the second to last Denver Market Update for 2025. It seems like just last month we were sharing our 2025 Denver Market Prediction, but whether I believe it or not, we are quickly wrapping up the year and looking at making holiday plans. And, I am not the only one looking at the time of year and focusing on the holidays.

If you read last month’s market update blog, you will know that at this time last month we were stating the market was not following the historical Denver fall slowdown trend and that the market has been mainly flat since July and August. Almost immediately after publishing that blog, the market shifted. Denver did, in fact, see a fall slowdown; it was just about a month delayed and does not seem to be resulting in the normal trends seen during the fall slowdown.

Historically, we see a large decrease in homes selling this time of year, and the homes that do sell often sell for less. This trend usually will continue through November and  the first part of December. However, this year’s fall slowdown seems to be slightly different. The big difference is that home values do not seem to be following the normal trend of going down. In fact, according to DMAR, values are up 1.45% as of early November, while almost every other stat is down. The reason for this might be simple and the main reason Denver’s market has struggled to heat up for the majority of 2025: inventory levels.

We are finally starting to see a lower number of homes for sale, while the number of buyers has remained mainly unchanged. This means that inventory levels are starting to go down as we head into the end of the year. Some of the reason for this is most certainly the time of the year. Most Denver home sellers do not want their home on the market during the holidays. This results in fewer homes coming on the market and even some sellers removing their home from the market as they start preparing for the upcoming holidays. This combined with the number of pending homes staying the same or even slightly up results in lower inventory levels. We all know that lower inventory levels typically mean values remain the same or go up as long as demand stays strong. Buyers have been enjoying some relief with lower interest rates, not seen previously in 2025. This could be a big factor in why buyer demand remains stronger, even with the fast-approaching holidays.

Even with slightly lower inventory levels and improved mortgage rates, it’s still not fully a seller’s market. In fact, from my personal experience with homes that have recently gone under contract, they are going under contract lower than list price and/or with seller concessions. This trend has remained mostly unchanged from previous months across Denver. This means that part of why we’re seeing a higher number of pending homes right now could be due to sellers being more willing to negotiate with willing buyers, likely trying to get their house sold before the holidays. This current trend could mean that both buyers and sellers have a fairly equal opportunity right now to sell and purchase.

Looking ahead through the end of the year, we might start seeing sellers have more leverage if inventory levels continue to trend downward with buyers staying in the market. This trend could be intensified in the event that the mortgage rates continue to trend lower. However, there is also lots of uncertainty across the marketplace both in Denver and nationally right now. Denver’s real estate market is still vulnerable, and the pendulum could swing either way—towards buyers or sellers. Only time will tell which direction the market leans toward as we round out 2025 and head into 2026.

With Denver’s real estate market so uncertain right now, it’s nice to have at least one thing buyers and sellers can count on. No matter what the market does, TK Homes’ agents will continue to monitor the market closely to ensure that they are able to best guide Denver area homebuyers and sellers alike. If you are thinking about making a Denver real estate sale or purchase, contact a TK Homes agent today and let’s chat about your goals and create a strategy that will make your real estate goals a reality, regardless of the Denver real estate market conditions.
 

~ Written by CEO/REALTOR® Trevor Kohlhepp