October Denver Market Update

As if the pumpkin spiced lattes at your favorite café didn’t give it away, we’re officially in fall of 2025. Usually, this time of year leaves are not the only thing we see falling across the Denver metro area. Historically, we see our Fall Slowdown, which results in homes sitting on the market longer and values falling. However, as mentioned with last month’s Market Update blog, 2025 has not been following historic trends, and it appears the fall market will be no exception.

In fact, Denver’s market has stayed relatively unchanged from last month, so I was concerned that if  you read last month’s market update blog, you might think you’re just rereading the same article this month. What I mean by this is that home sales continue to stay steady and values remain level. This could be largely due to the recent drop in interest rates, giving buyers the first small break in high interest rates for some time. With continued talk of two additional Fed rate cuts, interest rates likely will remain at this new lower level and even potentially tick down more. However, there is one new change from last month that could prove to change the course of Denver’s real estate market for the rest of 2025.

Surprisingly, we’re seeing a higher-than-normal number of new homes hitting the market for this time of year. In fact, at the time of writing this blog, there are over 1,530 new homes for sale. During the summer months, this number would be normal or even on the low side. However, in the fall months, we would typically see fewer homes hitting the market. The trend of fewer new homes for sale helps reduce inventory levels leftover from the summer market. However, right now we are seeing a higher number of homes hitting the market than going under contract. If this trend continues, it could add to the already elevated inventory levels. As buyers go under contract or get out of the market due to the upcoming holidays, higher inventory levels could ultimately push home values down as sellers reduce their asking price to attract the limited pool of buyers still in the market. If this trend continues, it’s possible we will still see our traditional fall slowdown, just delayed from our normal timeframe.

Denver’s market is anything but normal right now. This means whether you are buying or selling a Denver area home, it’s more important now than ever to make sure you’re working with an industry expert that understands the current market conditions. It’s too easy for a Denver real estate agent to just assume Denver is following its traditional pattern and to use the wrong selling or buying strategy. This is why, at TK Homes, our agents pride themselves in understanding today’s market conditions, and we customize your buying or selling strategy to align with your goals and the current market conditions. Contact a TK Homes agent today and let’s talk about how we can make your real estate goals a reality!

~ Written by CEO/REALTOR® Trevor Kohlhepp