September Denver Market Update

If you’ve been following our recent Market Update blogs, there’s been a lot of discussion about downward pressure, and the market struggling to gain momentum as we’ve worked through 2025_—enough that many might expect this month’s update to be more of the same. However, this month’s market update just might have a different tone, but this doesn’t mean the market has turned around. Let me explain.

Before we get to why I am optimistically stating the market might be starting to sing a different tune, we must first understand historically what we see in August and September regarding Denver’s real estate market. Historically, Denver’s home sales drastically drop in August and September, often signaling the upcoming slower selling season as we head into the winter months. This will usually result in a loss of value of between 3-5% from August to the end of the year and fewer homes going under contract. So, at the moment, why does this matter in 2025?

As we head into September, the market appears mostly unchanged from more recent months with pending home sales staying steady or even slightly up. This means that Denver’s current real estate market is not following the historic trend of starting the fall slowdown. There are two ways this could be interpreted.

Interpretation 1 »

Denver’s recent market slowdown has hit the bottom; recent lost value has gotten low enough that buyers are jumping back into the market. Interest rates have also come down some, which could be fueling buyers desire to get back into the market. If this is the reason we’re not seeing a typical fall slowdown right now, then it’s possible we could see more buyers jumping into the market in the upcoming months and see values level out or even tick up slightly.

Interpretation 2 »

Sellers are starting to accept the market conditions are softer and that, in order to sell their homes, they need to be more willing to negotiate and accept the buyer’s terms.  Many of the contracts TK Homes has seen accepted recently are below list price, sometimes sizably below, and contain large concessions that buyers can use for rate buydowns. Perhaps we’re seeing homes going under contract right now because sellers are finally understanding that their home is not worth what it once was, and if they truly want to sell, they are going to have to be willing to accept less for their home. If this is the case, then we will see the number of homes pending stay mainly unchanged; however, the overall values would drop in this scenario.

Obviously, for homeowners and sellers, interpretation 1 would be more ideal; however, my professional opinion is that what we are seeing might be more in line with interpretation 2. Regardless of why we’re seeing the market stay basically level as we head into the fall selling season, I think this is positive for Denver’s real estate market as we come out of one of the lowest summer selling seasons of my 10-year career. Time will tell if the reason is due to interpretation 1 or 2, but what we do not have to wait to see is that TK Homes will be there helping Denver area homebuyers and sellers navigate Denver’s complex real estate market. If you are thinking of making a change in your home this fall, contact a TK Homes agent today and let’s talk about what we need to do in today’s market to make your real estate goals a reality!

 

~ Written by CEO/REALTOR® Trevor Kohlhepp