Denver's housing market in 2025 was a year marked by careful shifts, sustained resilience, and renewed opportunities. While the national narrative often focused on affordability concerns and elevated mortgage rates, Colorado's Front Range held its own with strategic activity from buyers, sellers, and investors alike.
At Corken + Company Real Estate Group, we’ve guided our clients through each twist and turn in the market this year. As we close out 2025, we’re taking a comprehensive look at what defined the past twelve months in Denver real estate, and what it all means for your next move in 2026.
2025 began with familiar themes: limited inventory, cautious buyers, and sellers wondering how long to wait. But as the months unfolded, the metro Denver market gradually shifted toward balance. Inventory increased modestly, giving buyers more to choose from while encouraging sellers to price competitively.
Home prices remained stable overall, with the average closed price across the Denver metro holding near $673,000 by year-end. Median prices hovered in the mid-$580,000s, up slightly from 2024 but without the breakneck acceleration of prior years. The pace of appreciation slowed, which allowed buyers time to evaluate options and reduced pressure during negotiations.
Sellers still saw strong activity in desirable neighborhoods, especially for homes that were move-in ready and well-staged. Meanwhile, buyers gained confidence, particularly when paired with local lenders offering creative solutions to manage higher interest rates.
-
Average Closed Price (Year-End): $673,000
-
Median Closed Price: $583,000
-
Total Closed Listings: 41,821
-
New Listings Added: 54,301
-
Average Days on Market: 34
-
Percent of Closed Price to List Price: 98.5%
New listings throughout the year were down roughly 8% compared to 2024, and closed transactions declined by 17%. Despite this slowdown, pending transactions rose in several key months, signaling renewed buyer motivation.
October and November saw year-over-year increases in pending sales of 9% and 13%, respectively, a sign that affordability was stabilizing and that motivated buyers were staying engaged even in cooler seasons.
Spring remained the most active season for both listings and closings, but there was a noticeable uptick in fall activity this year. September alone recorded 3,506 closings, a 7% increase from the year prior. This trend reflects a more evenly distributed transaction volume throughout the year and an evolution away from the all-or-nothing spring market dynamics of previous years.
Sellers who listed in the late summer and early fall saw stronger than expected demand, particularly in centrally located or newly updated homes. With buyers re-entering the market in greater numbers toward the end of the year, expectations are high that this momentum will carry into early 2026.
The luxury segment—homes priced $1 million and above, emained active despite higher financing costs. Many luxury buyers operated with cash or significant equity, allowing them to bypass interest rate concerns entirely. Demand in Cherry Hills Village, Greenwood Village, and Castle Pines held steady, with homes in top condition moving quickly.
On the investment side, opportunities began to emerge again in late Q3. With rental rates holding strong and some sellers becoming more flexible, savvy investors found value in single-family homes and small multifamily units in up-and-coming neighborhoods like Wheat Ridge, Edgewater, and the eastern stretches of Aurora.
Cap rates in the 5.5% to 6.2% range were increasingly common by November, particularly for properties with minor renovation needs. Investors who moved quickly were able to capitalize on lower competition while interest rates remained steady.
Interest rates played a defining role in the 2025 market. Fixed rates hovered between 6.75% and 7.25% for most of the year, impacting affordability but not eliminating demand. Buyers and sellers alike had to adapt their strategies, many buyers chose rate buydown options or adjustable-rate products to ease initial costs.
Lenders in Colorado responded with local programs designed to assist first-time buyers and those moving within the state. These products helped many buyers remain active, even as monthly payments rose compared to the historically low-rate environment of the early 2020s.
As we look ahead, Denver’s housing market is positioned for continued steadiness, with room for growth in the spring and summer months. Sellers who prioritize pricing accuracy, home preparation, and strong marketing will remain competitive. Buyers who secure financing early and work with experienced agents will be well-positioned to act when opportunity knocks.
Investors should monitor inventory closely in Q1 and Q2. Should rates begin to ease, competition may increase quickly, particularly for properties under $600,000 in high-demand submarkets.
At Corken + Company, our full-service approach ensures you’re prepared for whatever the 2026 market holds. Whether you’re selling a luxury home, buying your first condo, or expanding your real estate portfolio, our expertise can help you make confident decisions every step of the way.
Visit www.corken.co or call us at 303-858-8003 to start a conversation.
