Denver Metro Real Estate 2025: A Steady Year of Stabilization & Opportunities
As 2025 concluded, the Denver Metro real estate market demonstrated clear signs of stabilization. Prices held steady, inventory expanded meaningfully, and the market evolved into a more balanced environment—one that rewarded thoughtful preparation, realistic expectations, and strategic execution. Drawing from the December DMAR report, this overview highlights the year’s performance, with particular attention to the strong showing of detached homes over $1 million and a broader multi-year perspective that underscores sustainable progress.
Reach out to Ben and Erin Rule at RuleProperties.com to discuss how these trends align with your plans.
The Overall Denver Metro Market in 2025: Stable and Balanced
The year reflected a healthy recalibration. Affordability pressures and mortgage rates in the 6–7% range shaped buyer decisions, while sellers adapted through pricing adjustments, extended market times, and concessions. The result was a market that felt familiar and manageable—neither rushed nor stagnant.
- Prices: The combined average close price rose 1.27% to $708,725. Detached averages increased 1.15% to $787,452, while attached declined 3.43% to $441,145—illustrating a modest, controlled trajectory.
- Sales & Volume: Closings totaled 42,268 (down 0.82% YoY), with sales volume at approximately $30 billion (up 0.44%). Transaction activity has remained remarkably consistent over the past three years.
- Inventory: Active listings ended the year at 7,607 (up 10.44% YoY), with attached properties seeing the largest gain at 19.76%. This expansion provided buyers with greater choice and flexibility.
Overall, 2025 offered a more even playing field, where strategic decisions—rather than market momentum—drove strong outcomes.
Average Price Changes Over Five Years
Over the past five years, average close prices have risen steadily while the market has moderated from its earlier pace. Residential averages increased 15.72% from $612,430 in 2021 to $708,725 in 2025, with the majority of that growth occurring between 2021 and 2022 amid low rates and high demand. Detached averages climbed 14.39% over the same period, while attached rose 6.56%—reflecting differing demand patterns across property types. From 2023 onward, year-over-year changes have been modest (e.g., +4.28% residential from 2023 to 2025), signaling a transition from rapid appreciation to sustainable, gradual growth. Compared to 2022, residential averages are up 4.11%, confirming a healthy plateau that positions the market for continued stability and opportunity.
Deep Dive: Detached Homes Over $1M in 2025
The higher-end detached segment performed with consistency and strength. Closings reached 5,322 (up 6.57% YoY), and sales volume climbed 8.11% to $8.7 billion. New listings increased 13.52% to 7,876, and pendings rose 6.64% to 5,106. Buyers benefited from extended market times (average DOM 48 days, up 9.09%) and a close-to-list ratio of 97.95% (down 0.25%), while price per square foot rose modestly to $369 (up 0.27%). Over five years, this segment has shown steady growth in activity, supported by sustained demand for premium properties. From 2023, closings increased 20.37%, highlighting relative strength even as broader market conditions stabilized. This performance underscores the enduring appeal of quality detached homes in desirable locations.
- Growth Amid Stability: The increase in closings and volume demonstrates continued interest in well-positioned properties.
- Buyer Leverage: Longer market times and slight discounts reflect greater negotiating room, though quality and location retained strong appeal.
- Relative Performance: This segment outperformed attached properties and contributed meaningfully to overall market resilience.
These patterns point to continued opportunity for those who approach the market with clear strategy and professional guidance.
Reach out to Ben and Erin Rule at RuleProperties.com for a personalized review of these trends and their implications for your plans.