How Is the Denver Real Estate Market Doing in October 2025?
As Denver's trusted real estate partners at Rule Properties, we're committed to providing clear, expert insights to help you navigate your home-buying or selling journey. If you're wondering about the current state of the Denver real estate market, the short answer is: it's stabilizing into a more balanced environment. With rising inventory, steady sales activity, and cautious buyers benefiting from lower interest rates, the market offers opportunities for prepared participants. Based on the latest September 2025 data (the most recent available as of mid-October), here's a professional overview to guide your decisions.
Key Point 1: Inventory Levels Are Rising, Giving Buyers More Choices. Active listings in the Denver metro area have increased significantly year-over-year, up about 17-18% overall.[1][2] This trend marks a shift from the low-inventory days of recent years, with detached homes seeing an 18% jump to around 9,000 active listings and attached properties (like condos and townhomes) up 17% to over 4,000. In the luxury segment ($1M+), inventory for detached homes sits at 4-7 months' supply, while attached homes face higher levels—up to 21-30 months in higher price brackets.[3] This buildup means more options for buyers, but it also requires sellers to price competitively to stand out.
Key Point 2: Sales Activity Remains Steady, with a Clear Preference for Detached Homes. Closed sales in September totaled 3,506, reflecting a 7% year-over-year increase.[4] Detached single-family homes are leading the way, with sales up 6.5-7% compared to last year, while attached properties have seen a 16-17% decline.[5][6] Buyers are gravitating toward detached homes for their space, privacy, and land value, especially in a market where affordability concerns persist. In the $1M+ category, detached pending sales rose over 5% month-over-month, highlighting sustained demand in this resilient segment.
Key Point 3: Prices Are Holding Firm with Mild Softening. Median home prices are maintaining stability amid the increased supply, though some mild softening is evident due to broader economic factors.[7] Buyers are active but selective, often waiting for ideal conditions like the recent dip in mortgage rates following a federal funds rate cut. This has created a "new normal" where well-prepared homes sell efficiently, but overpriced listings linger.
Key Point 4: Days on Market Are Extending, Signaling a Balanced Shift. The average days on market has climbed to 35 days, up from 30 in August and significantly higher than the ultra-low figures from 2021 (e.g., 18 days median for detached homes now, versus just 4 days back then).[8] For attached homes, it's even longer at 32 days median. This extension indicates a move toward a more buyer-friendly market, where negotiation power is increasing—particularly for attached properties facing challenges like rising insurance and HOA costs.
Key Point 5: Interest Rates Remain Elevated, with Limited Declines Expected. Current 30-year fixed mortgage rates are hovering around 6.15%, providing some relief compared to earlier peaks but still impacting affordability.[9] Forecasts indicate that rates aren't expected to decrease much more over the next year, likely holding around 6% through 2026 as the Federal Reserve's actions stabilize the economy.[10][11]
In summary, the Denver real estate market in October 2025 is characterized by steady progress toward balance, with opportunities for both buyers and sellers who approach it strategically. Whether you're eyeing a detached family home or exploring investment options, now could be a smart time to act amid lower rates and growing inventory.
At Rule Properties, with over 40 years of combined experience as top 1% Denver metro brokers, we are here to provide personalized expertise for your real estate goals. Contact us today to discuss how these trends impact your plans—let's make your next move a success.
References
1. https://beaconrealestateservices.com/b/Denver-Residential-Real-Estate-Market-Update-September-2025
2. https://www.madisonprops.com/blog/posts/2025/10/15/september-2025-denver-metro-market-stats/
3. https://www.madisonprops.com/blog/posts/2025/10/15/september-2025-denver-metro-market-stats/
4. https://recolorado.com/september-housing-market-reports/
5. https://thedenver100.com/so-hows-the-market-september-2025/
6. https://recolorado.com/september-housing-market-reports/
7. https://thedenver100.com/so-hows-the-market-september-2025/
8. https://thedenver100.com/so-hows-the-market-september-2025/
10. https://www.morningstar.com/economy/why-mortgage-rates-might-not-keep-falling