Denver Real Estate Market Update – September 2025
We’re only a few days away from the official start of fall, but the Denver real estate market is already showing fall-like patterns. For months now, we’ve been pointing out that the market was adjusting quicker than its usual seasonal pace. The latest data confirms it.
But here’s the good news: this is actually a positive shift.
What the Data Shows
- New listings are down
- Pending sales are up
- Closed sales are holding stronger than expected
- Homes are spending more time on the market
So how does that add up to a positive story? Simple put, the Denver housing market is behaving rationally. After years of extreme competition, prices and demand are finally in balance. The latest jobs report was seen as a signal that the rate tightening cycle may be coming to an end (aka lower interest rates are anticipated).
Denver in Context
National headlines have put Denver near the top of the list for price declines and higher inventory. That might sound negative, but here’s the reality:
- For years, Denver was one of the toughest places in the country to buy a home.
- Prices here rose faster than the national average, especially during COVID when inventory was at record lows.
- Now, with more balanced supply, home prices are leveling out closer to national trends.
On paper, the percentage change in Denver looks dramatic, but that’s only because our market was so overheated before. What we’re experiencing now is a healthy reaction to current conditions.
What’s Driving the Change?
- Mortgage Rates: Ultra-low rates during COVID drove prices higher. Today’s higher rates have cooled demand.
- Inventory Balance: More Sellers than Buyers, means Buyers finally have more negotiating power.
- Seller Behavior: Many homeowners are “rate-locked,” staying put with low mortgages, which slows the pace of new listings.
The Federal Reserve’s interest rate stance has taken a more dovish tone. Their next meeting on rates will be coming on the heels of an inflation report and the current jobs report (which showed labor markets cooling fast). The market is expecting an interest rate cut. If rates slip back into the 5% range, as many buyers and relocation clients tell us is “good enough”, we could see activity build again this winter and into spring 2026.
What Buyers, Sellers, and Renters Should Know
- Sellers in Denver: If you don’t have to sell, it may make sense to hold off until rates ease, knowing there is upside to the sell side and risk to buy side (if making the trade). If you do list, price competitively and expect longer days on market.
- Buyers & Relocation Clients: Right now, there’s more inventory and more negotiating power but truly great homes remain limited. Finding the right home and moving quickly is where working with an experienced Denver RealGroup Realtor pays off.
- Renters Transitioning to Buying: Using a mid-term lease, while planning a home purchase, can give you the flexibility to be patient in finding the right home. Be patient in finding the right neighborhood and the right home.
Bottom Line
This fall will feel slower for both buyers and sellers. That can be frustrating, but it’s also a sign of a more balanced, healthier Denver housing market. If you’re relocating to Denver, buying, selling, or planning your transition from renting, patience and strategy will matter more than ever.
The opportunity is out there, it just takes the right timing and the right partner at the RealGroup to help you find it.
Denver Sept 2025 Market Stats Table
