The Pulse #denver market update

Denver’s real estate vibe in summer 2025 is all about major market shifts—think more listings, subtle price changes, and new opportunities for both buyers and sellers. July kicked off with a noticeable jump in inventory; there are nearly 4,000 active residential listings in Denver, which is the highest July number the city’s seen in years. For comparison, there were just 1,380 homes on the market in July 2021. This inventory surge is giving buyers plenty of options and more negotiating power, while sellers are feeling the pressure to get creative and competitive. 

Pricing trends are interesting: while there’s a lot of talk about price cuts and homes lingering longer (46 days on average vs. 31 last July), the market is not “crashing”—in fact, the average sales price hovers around $684,000, down only 4% from a year ago, and the median is holding steady in the $600,000s. Many well-prepped, move-in-ready homes in popular neighborhoods are still drawing competitive offers and, after a smart price drop, sometimes even get bid back up close to their original asking price. 

So, what’s driving these dynamics? Higher mortgage rates (around 6.8–6.9%) are dampening demand, causing buyers to take their time, which means homes spend longer on the market. But they’re also paving the way for a more balanced market—not a seller’s frenzy, not a buyer’s bonanza, but a chill, transitional phase. Year-over-year, buyers are still active, with closed and pending sales up about 5%, and Denver is actually outperforming the national home sales trend, which makes our scene feel a little more resilient—even as pricing flexes a bit. 

Bottom line: If you’re shopping for a place, you’ll find more choices and less FOMO. For sellers, it’s all about smart pricing and putting your home’s best foot forward—today’s buyers are more deliberate and expect homes to stand out. This July, the Denver market is leveling up—think less hype, more strategy, and just enough unpredictability to keep local real estate fun (and maybe just a touch wild).

Follow me along the way as see what this year has in store week by week. THE PULSE will keep beating for when the right time comes.

Hot Takes | Inside Scoops | Policy Changes | Political Impacts | Market Madness | Much More!

As we navigate the complexities of the U.S. housing market in 2025, it's essential to understand both the challenges and opportunities that lie ahead. This overview will delve into the current state of real estate, highlighting positives, negatives, and projections for the next three months.

Positives

1. Economic Growth and Investment Activity: The U.S. economy is poised for growth in 2025, driven by consumer spending and productivity gains. This economic stability is expected to support a moderate recovery in real estate investment activity, despite high interest rates.
2. Office and Retail Revival: The office sector is seeing an up-cycle, with shortages of prime space anticipated by the end of 2025. Retail, meanwhile, is experiencing low vacancy rates, with growing demand in suburban locations and Sun Belt cities.
3. Industrial and Multifamily Growth: Industrial real estate continues to benefit from e-commerce, while multifamily demand remains strong due to high home ownership costs. Vacancy rates in multifamily are expected to decrease as tenant demand persists.

Negatives

1. High Mortgage Rates: Mortgage rates remain elevated, hovering around 6.75% to 7% for 30-year fixed loans. This high cost of borrowing continues to strain affordability for potential homebuyers.
2. Limited Housing Inventory: Despite a slight increase, housing inventory remains below historical averages. This shortage, combined with high mortgage rates, keeps the market challenging for buyers.
3. Affordability Crisis: The gap between home price growth and wage increases exacerbates affordability issues. Many potential buyers are priced out of the market, leading to a significant portion of renters unable to transition to homeownership.

Projections for the Next Three Months

1. Mortgage Rate Stability: While there are predictions of slight decreases, mortgage rates are generally expected to remain stable or slightly decrease, which may not significantly impact affordability.
2. Inventory Trends: Inventory levels are likely to continue their slow increase, primarily driven by new construction rather than existing home sales. This could lead to a more balanced market in some regions.
3. Home Sales and Prices: Existing home sales are projected to see a modest increase, potentially reaching around 4.1 million in 2025. Home value growth is expected to be soft, with a forecasted increase of about 0.6%.
4. Market Dynamics: The market is likely to remain a seller's market in many areas due to limited inventory, though regions with increased inventory might shift towards a buyer's market.

In conclusion, while the U.S. housing market faces significant challenges, there are opportunities for growth and stabilization. As a Denver realtor, understanding these national trends can help you navigate local market dynamics and provide informed guidance to your clients.