Denver Real Estate Market Update: Fall 2025 Brings a Shift to a Buyer’s Market

If you have been following the Denver real estate market over the past few years, you know it has been a remarkable run. After a long period of record-setting prices and fast-paced sales, the balance has shifted. As of October 2025, Denver has entered a buyer’s market, bringing new opportunities for those looking to purchase a home.

What’s Happening in Denver Real Estate

According to the Colorado Association of Realtors, statewide home prices have remained relatively steady compared to last year. However, local conditions in the Denver metro area tell a different story.

The average home price in metro Denver is now around $599,000, while detached single-family homes average between $650,000 and $666,000. Homes are staying on the market longer and are often selling below their original list prices. This marks a significant change from the competitive seller’s market of recent years.

Key Trends in the Denver Housing Market for Fall 2025

Buyer’s Market Conditions

Buyers now have more leverage in negotiations due to growing inventory and slower overall sales. This shift has created a more balanced market where buyers can take their time, explore options, and make thoughtful decisions.

Inventory Growth

Active listings have increased significantly year-over-year through July and September 2025. With more homes available, buyers have greater flexibility and choice when searching for properties in Denver and the surrounding areas.

Cooling Prices

While Denver’s home prices remain higher than national averages, they have cooled since the peak of 2022. Higher interest rates, inflation, and affordability challenges have contributed to slower sales, particularly in the $400,000 to $1 million price range.

Market Variations Across the Metro Area

Not every part of the Denver market is experiencing the same conditions.

• Starter homes have seen modest price increases due to limited supply.

• Luxury homes priced over $1 million continue to perform well, with steady demand and sales growth.

• Boulder has also shifted toward a buyer’s market, while Aurora continues to see rising prices and declining inventory.

Outlook for 2026

Looking ahead, market forecasts suggest that Denver could see renewed activity in spring 2026. As interest rates are expected to decline, affordability may improve and encourage more buyers to re-enter the market.

Our Take

Market shifts always bring both challenges and opportunities. For sellers, strategic pricing and presentation are key to attracting serious buyers. For buyers, today’s conditions offer a chance to purchase a home without the intense competition of the past few years.

If you are considering buying or selling in the Denver metro area, I would be happy to help you understand what this evolving market means for your specific goals.

Contact the Art of Home Team today to discuss your next move in Denver’s changing real estate market. And while you're at it, join our newsletter below!