4 Things Denver Homebuyers
Must Know Before Buying a Denver Home

June 19, 2025

If you have been following our monthly Denver Market Update blogs, then you know that Denver’s real estate market is experiencing a cool off. We’ve recently shared what this means for sellers, but what about buyers?  Below are four must-know facts to be aware of before you buy a home in the Denver metro area.


1. Inventory Is Up

According to DMAR, inventory across the Denver metro area is up 13.67% from April to May with 13,599 homes for sale. This is nearly double the number of homes that were for sale in January of 2025, at which time there were just 7,688 homes for sale. With more homes for sale, buyers now have more options when looking for their next house to call home.

With more options available, you can be more selective as a buyer—especially when it comes to location, finishes, and perhaps most importantly, price. This also means that, as a buyer, you can take more time to make your purchasing decision—often viewing more homes and circling back to revisit homes multiple times before making an offer. This is very different than Denver area buyers have experienced in previous years when homes were selling the first weekend they were on the market.

2. Rate Buydowns Are Common

One of the biggest reasons homes are sitting and inventory levels across Denver are rising is due to the continued higher mortgage interest rates. At the time of writing this blog, interest rates are hovering in the high 6s to low 7s range for most borrowers. This is causing borrowers’ monthly payments to be higher than many buyers are willing to take on.

However, with the current market conditions across Denver and sellers having to compete for a smaller buyer pool, many are open to giving buyers seller concessions that can be used for a rate buydown. This rate buydown can be in the form of a smaller but permanent buydown, or a 1-, 2-, or 3-year rate buydown for bigger monthly savings—but only for a pre-set time of 1–3 years. These rate buydowns are able to save buyers hundreds of dollars on their monthly payments and make these higher interest rates more manageable. This gives homeowners time to wait for mortgage interest rates to come down and then allows them to be able to refinance into a lower fixed rate—hopefully before their rate buydown expires.

3. Sellers Aren’t Giving Away Their Homes
 

Now, I know what you’re thinking, with the high inventory across the Denver metro area and so few buyers, sellers must be desperate and basically giving away their homes. However, this is actually far from the truth for most home sellers. In fact, I explained in our last Denver Market Update article that the fact that sellers are being slow to reduce their asking prices is part of why values in Denver are remaining flat even with the current market conditions. Most sellers do not seem to be in a hurry to sell, and they aren’t willing to just take any price for their homes. Many homeowners are choosing to stay put instead of accepting a significantly lower purchase price. This is why values haven’t fallen across the Denver metro area.

Buyers that are hoping to come in and get $50,000 to $100,000 off the seller’s asking price are likely going to see their offers rejected. More realistically, buyers are seeing offers accepted at or near list price with around $10,000 to $15,000 in seller concessions. However, at TK Homes, we have seen more than one situation where sellers do appear to be motivated, and they are starting their asking price well below recent comps. These are the homes, as a buyer, you might be able to purchase well below recent home values; however, even in these scenarios, we’re seeing sellers accept offers near, at, or even slightly above list price if the asking price was aggressive enough.

4. Now Could Be a Great Time to Buy

Buyers across the Denver metro area are seeing buying conditions that we haven’t seen since well before COVID-19. Home values are remaining flat, and homes are sitting on the market longer. Often, buyers can take advantage of large seller concessions that can be used to reduce interest rates and make a home purchase more affordable. These conditions alone make it more of a buyer’s market, making it a great opportunity for buyers looking to purchase a home. If Denver’s historical real estate trends can teach us anything, it’s that Denver is an in-demand place to be. If we see interest rates start to come down, Denver’s real estate market has the potential to heat up quickly and give sellers the advantage once again.

Even though market conditions currently favor Denver homebuyers, it can still be tricky to buy a home when sellers are unwilling—or simply don’t need—to adjust to current market conditions. It is more important now than ever to work with a Denver real estate agent that understands the current market, has the experience to negotiate with stubborn home sellers, and can help you structure a deal that is a win for the seller and deal for you as the buyer! TK Homes is proud to be helping homebuyers across Denver navigate this new market we’re experiencing and has the know-how to ensure you’re making a smart purchase in today’s market. If you’ve thought about buying a Denver area home and have been waiting for the right market conditions, now could be the time. Contact a TK Homes agent today and let’s talk about your specific needs, wants, goals and make your real estate goals a reality.

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~ Written by CEO/REALTOR® Trevor Kohlhepp