The Current Market
and What It Means for Sellers

MAY 22, 2025

Real estate is ever-changing, and the Denver real estate market is no different. It is very interesting from a REALTOR® perspective because I feel like just when you understand what is currently going on in the market, it changes. I think it is challenging for sellers right now because everyone remembers the height of the market in 2020 to mid 2022 when sellers got many offers and way over asking price. During that time period, one of my sellers got $125,000 over asking price. Our current market is definitely not the same. So, what does our current market look like for sellers? Let’s dive in.

Even though it is May, which is typically one of the best months of the year to sell, and we are right in the middle of our spring market, things have already slowed down. If you read our recent May Denver Market Update, you know that higher interest rates, the new tariffs and current global conditions are slowing down our market. People in general feel unsettled, and this is carrying over to buyers and making them more hesitant to buy a home at this time. Because of the things just mentioned, we are seeing lots more inventory and fewer buyers. Recently, at our office Coffee Talk (our Monday morning agent meeting), it was stated that we currently have the most homes we have had on the market since 2009. If you remember, 2009 was right after the housing market crash and before the market recovered.

Here are some things that a seller can expect when selling their home now. First, in most cases, it is very unusual to go under contract after your first weekend. Many buyers are circling listings, waiting until the home has been on the market a couple of weeks, and then they are making their offers. When they make their offers, they are feeling comfortable coming in below list or asking for seller concessions (money the seller gives the buyer towards their closing costs or a rate buydown). As of Monday, May 19th, the interest rate for a 30-year mortgage without points was in the low 7s. Many buyers are using their seller concessions to buy down their interest rates. Some buyers need that to make their purchase, but other buyers are asking for it because they can, and it makes their monthly payment more affordable. Seller concessions are no longer rare in transactions today.

We are seeing longer days on market, and more of the strategy—list high so when sellers do a price reduction, sellers can get the price they really wanted to begin with. Price reductions are common and no longer seem to be stigmatizing a property as they did in the past when the market was hot.

The next big change for sellers in today’s market is the inspection process once under contract. After inspections, we are seeing many buyers ask for quite a few things to be completed/replaced on their Inspection Objections. Many sellers are addressing most or all of the items on the Inspection Objection list. These sellers understand that it is important to keep their buyers because they do not know when the next buyer will see their home and be willing to make an offer. This is why they are doing most if not all of what is asked of them.

These are just a few, but very common things sellers in today’s market have to understand when listing their home. However, it is important for sellers to understand that even though the market looks different today for sellers than recent spring markets, homes are still selling (TK Homes currently has three sellers under contract at the time of writing this blog), and values have not fallen much even in these conditions. This means that if you’re ready to make a change in your living situation, now still could be a great time to do so, especially if you’re going to be buying a replacement home.

At TK Homes, we monitor the market very closely. It is important to know how to best help our clients no matter the market conditions. It is also important to educate our clients so that they know what to expect throughout the process of buying or selling a home. I always tell my clients—most surprises in real estate aren’t good. We are committed to staying on top of the market so that we can help sellers net the most, buyers get the best price, and reduce those unwanted surprises throughout the transaction. If you are interested in selling or buying a home, contact a TK Homes agent today, and we will make your real estate goals a reality no matter the market!
 

~ Written by TK Homes REALTOR®, Mary Smith