August 2025 Housing Market Trends | Corken + Company Real Estate Group

The Denver metro housing market in August 2025 reveals a compelling story of shifting dynamics, cautious optimism, and sustained competition. Whether you're buying, selling, or investing, understanding how the latest numbers translate into strategy is key. At Corken + Company, we interpret these trends through a local lens to help you navigate confidently in today's market.

Prices Are Holding Steady Amid Changing Activity

The median close price for residential properties in August landed at $593,250, up a modest 0.81% month-over-month. This resilience is notable given the slower pace in other key market metrics. Breaking that down, the median price for single-family homes remained flat at $625,000, while townhouse-condo prices dropped 2.4% year-over-year to $390,000.

Average prices showed similar patterns: $761,072 for single-family homes, a 0.4% increase from August 2024, and $461,730 for condos and townhomes, virtually unchanged from last year.

In the broader context, price stability suggests that the market has found its footing after the turbulence of recent years. While we’re no longer seeing the rapid appreciation that defined the post-2020 period, sellers can still expect strong valuations—especially if their homes are in good condition and well-located. Meanwhile, buyers can enter negotiations with more confidence, knowing the days of intense bidding wars are, for the moment, behind us.

Closed Sales Slowed, But Buyer Demand Holds

August brought 3,636 closed residential transactions, marking a 5.83% decrease month-over-month. Sales volume dipped slightly as well, reaching $2.60 billion, down 3.09%. While this cooling might seem like a setback, it reflects broader seasonal trends and ongoing market recalibrations following pandemic-era volatility.

This shift in closed transactions is not necessarily a signal of weakening demand, but more a reflection of evolving buyer behavior. Many are still interested and actively searching, but they're being more deliberate. Economic factors such as inflation, mortgage rates, and job market shifts are influencing decision timelines.

Even with fewer closed sales, pending sales increased by 8.37% to 3,921, indicating that demand hasn’t disappeared—it’s simply shifting into a slower-moving market environment. Buyers are still engaging, but they have more time and inventory to consider their options. This type of healthy pause can lead to more confident purchases and ultimately more stable ownership, which is good news for the long-term health of the market.

Inventory Builds, Offering Buyers More Breathing Room

Active listings reached 13,059 in August, a 6.69% drop from July but still up 4.9% year-over-year for single-family homes and 6.4% for townhomes and condos. This signals a market that is gradually becoming more balanced, giving buyers a better selection and slightly more negotiating power.

While total inventory slipped slightly from the previous month, the year-over-year gains matter more in terms of trend analysis. These increases suggest that sellers who were hesitant in past quarters are starting to list, perhaps recognizing that conditions are still favorable enough to command strong prices.

However, new listings dropped sharply to 4,686—a 12.48% decline month-over-month—suggesting potential sellers may be waiting for more favorable conditions or are still holding onto ultra-low mortgage rates. Many homeowners who secured historically low rates between 2020 and 2022 remain reluctant to move, leading to a phenomenon sometimes referred to as “rate lock.”

This bottleneck in new inventory may continue to keep upward pressure on prices, especially in popular neighborhoods with strong school districts, desirable amenities, and limited housing supply.

Homes Are Taking Longer to Sell

One of the most noticeable shifts is in days on market. In August, homes spent a median of 30 days in MLS, up 25% from the prior month. Looking specifically at property types, single-family homes averaged 47 days to contract (up 17.5% YoY), while condos and townhomes took even longer at 61 days—a 45.2% year-over-year increase.

For sellers, this means strategic pricing and presentation are more important than ever. A home that is well-prepared, correctly priced, and professionally marketed is still highly likely to sell—but the days of instant offers and multiple-bid situations are no longer the norm.

On the buyer side, this extended market time offers an advantage: more breathing room for decision-making, scheduling inspections, and securing financing. The added time helps reduce stress and supports more thoughtful choices, especially for first-time homebuyers who may feel intimidated by fast-paced conditions.

Market Affordability Shows Signs of Stabilizing

The Housing Affordability Index for August remained unchanged from July at 67 for single-family homes and 110 for townhomes and condos. This marks a year-over-year decline of 1.5% for single-family and no change for attached properties. Although affordability remains strained for many, especially first-time buyers, the slowing price growth combined with increased inventory may offer some relief.

It’s important to note that affordability is not just a function of price—it also includes income trends and mortgage interest rates. As of August, many buyers are still grappling with elevated borrowing costs compared to the lows seen in 2021. However, as wage growth continues and home price growth softens, affordability may improve in the coming quarters, particularly if interest rates start to ease.

For buyers considering a move within the Denver area, the townhome and condo market presents a more attainable entry point, with better affordability metrics and longer days on market offering a more flexible shopping experience.

What This Means for Buyers and Sellers

For buyers, this environment presents more choice and less competition than in previous years. While interest rates may remain a factor, the gradual pace and availability of homes provide opportunities to act strategically rather than reactively. We recommend securing pre-approval early, identifying must-have features, and working with a knowledgeable agent who understands the nuances of each micro-market in metro Denver.

Sellers, on the other hand, need to embrace realistic pricing and flexible timelines. Homes are still selling, but not overnight. Properties that are priced well and presented professionally continue to move, especially in sought-after neighborhoods. Consider investing in pre-listing inspections, light cosmetic upgrades, or home staging to make your property stand out.

Investors will also find this a moment of strategic opportunity. With inventory stabilizing and pricing steady, rental property acquisitions could be well-timed—particularly in submarkets with strong rent growth and limited new construction.

Whether you’re entering the market for the first time, moving up, or selling a long-held investment, Corken + Company is here to offer expert guidance tailored to your goals. Our team monitors shifts like these every month to ensure your decisions are grounded in real-time market realities.

Visit www.corken.co or call 303-858-8003 to connect with a team that knows how to navigate every turn of the Colorado real estate journey.

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