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Home Price Forecasts for the Second Half of 2025

Home Price Forecasts for the Second Half of 2025

Forecast Overview: What Experts Expect Through Year‑End 2025: Many leading real estate forecasts align: home prices will continue rising in late 2025, but at a much slower pace than the rapid gains seen earlier in the decade. The consensus range among eight respected market experts is +1.5% to +2.0% nationally for the full year.

 

Where some markets may see slight declines—generally minimal, around –3.5%—most regions are expected to hold steady or edge upward modestly. Importantly, this modest growth follows a 55% national gain over the past five years, reflecting long‑term appreciation rather than sudden change.

 

Why Prices Are Cooling: Supply, Rates, and Buyer Behavior

Mid‑2025 mortgage rates stabilized in the mid‑6% range. This has begun to coax more homeowners off the sidelines, slightly increasing inventory. Still, supply remains below historical averages in many metro areas.

 

With fewer bidding wars and less upward pressure, home price growth is moderating. Experts note that the more balanced conditions favor buyers—while still offering opportunities for sellers who price strategically.

 

What This Means for Greater Metro Denver and Colorado Communities

Colorado isn’t on track for dramatic swings. Rather, local market forecasts point to flat to modest adjustments in late 2025. Some Front Range areas may see mild price dips—especially where inventory climbed fastest—while high-demand neighborhoods maintain modest gains in the 1%–3% range.

 

Mountain towns could see similar trends. Ski‑destination communities may hold value better than lower-cost condo markets burdened by rising HOA dues and insurance. Suburban markets in Jefferson County, Parker, and Boulder’s outer rings could perform more resiliently thanks to affordability and lower volatility.

 

Strategic Takeaways for Sellers

For sellers in metro Denver and statewide:

 

  1. Expect modest price appreciation or stabilization through late 2025.

  2. Left unchecked pricing may lag if inventory rises—market comps matter more than ever.

  3. Seller opportunities exist where homes are well‑priced, staged thoughtfully, and marketed locally through agent networks.

  4. Timing still matters—but listing windows now center on realistic competition, not bidding wars.

What Buyers Should Consider Today

If you’re actively buying:

 

  • Expect more available listings and less aggressive competition compared to 2021–2022.

  • Mortgage rates, though elevated, remain within expected mid‑6% range through year‑end.

  • Price improvement opportunities could appear in transitional neighborhoods or higher‑end condo communities.

  • Long‑term projections still favor modest price growth—holding or buying now could lock in equity over time.

Investment and Relocation Perspectives

  • Investors should keep an eye on limited-rent areas with strong rental demand (e.g. transit‑oriented corridors, proximate suburbs).

  • Properties in Denver priced between $400 K and $800 K continue to appeal to families and remote workers.

  • While condo markets in ski towns may soften slightly, single-family homes in stable resort areas may remain firm.

 

As always, home price trajectory varies widely across Colorado. Neighborhood‑specific drivers like inventory shifts, economic growth, relocation patterns, and HOA burdens can alter broader forecasts. When you’re ready to explore what forecasts mean for your property or community, Corken + Company has the local insight and strategy to help you time the market wisely. Visit www.corken.co or call 303‑858‑8003 to learn more.

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