Denver Real Estate Mid-Year 2025: What’s Happening and What’s Next

The first half of 2025 has been anything but ordinary for Denver real estate. Inventory is at its highest level in 14 years, mortgage rates are hovering near 7%, and buyer behavior is shifting — again.

As someone who’s worked on both sides of the negotiating table (luxury real estate and high-level marketing), I’ve learned to look beyond the headlines. Here’s where the market really stands, what it means for buyers and sellers, and what experts predict for the second half of the year.

The Big Picture: Where Denver’s Market Stands Now

Denver is experiencing the highest active inventory levels since 2011. Buyers have options, and that means more negotiating power. Sellers, meanwhile, are having to rethink pricing strategies and presentation — gone are the days of multiple offers on every listing.

High mortgage rates and elevated inventory have created a rare window of balance. Instead of being firmly in a seller’s market, Denver is leaning toward neutral, even favoring buyers in some segments.

Bottom Line: Denver’s market is finally balanced. Buyers have more choices, sellers need sharper strategies, and both sides can win with the right timing and preparation.

The Luxury Market: Lifestyle Over Size

Luxury buyers in Denver aren’t chasing square footage — they’re chasing lifestyle. Walkability, lock-and-leave living, and proximity to cultural hubs like Cherry Creek, LoDo, and Hilltop are driving decisions.

Mid-century homes in Park Hill, lofts in the historic Flour Mill, and contemporary builds in Central Park are still commanding attention — especially when staged and marketed with design in mind.

Bottom Line: Luxury buyers aren’t chasing square footage — they’re chasing lifestyle. Walkable locations, architectural character, and convenience are defining what sells in Denver’s high-end market.

The Non-Luxury Market: First-Time Buyers and Entry-Level Opportunities

The non-luxury market tells a different story. Inventory has climbed, especially for condos and townhomes that once moved quickly. Many of these properties were pulled from the sales market and added to the rental pool, contributing to rental price drops (down roughly 6% year-over-year).

For first-time buyers, this shift creates opportunity: more choice, room to negotiate, and a chance to enter the Denver market at a softer price point.

Bottom Line: With more condos and townhomes on the market, first-time buyers have leverage they haven’t seen in years — and the long-term value of owning in Denver is still strong.

What’s Next for the Rest of 2025?

Experts predict inventory will remain high through the fall, giving buyers continued breathing room. However, homes that are well-priced and positioned — especially in sought-after neighborhoods like Cherry Creek, Sloan’s Lake, and Highlands — will still move quickly.

For sellers, it’s all about preparation and presentation. For buyers, it’s about acting strategically and taking advantage of the current balance.

Bottom Line: Expect a steady market, not a swing. High inventory will keep buyers in the driver’s seat, but unique, well-located homes — especially in walkable neighborhoods — will stay competitive.

Want More Local Insight?

If you’re considering buying, selling, or rightsizing in Denver, I’d love to help you navigate this unique moment in the market. Send me a message for a complimentary, no-pressure consultation.