Denver’s housing market experienced notable shifts in April 2025. The listing percentage went up by 65%, while the buyer activity increased by less than 2%. The prices for townhouses and condos experienced a dip. On the other hand, the cost of purchasing homes increased compared to 2022. These emerging trends are noteworthy for both buyers and sellers.
Highlights
- The housing inventory for sale surged by 65% this April as compared to last year in Denver.
- Buyer activity has cooled down, especially for the condos, due to various reasons such as affordability and high insurance costs.
- Sellers are suffering due to long periods of houses on the list and decreasing prices due to low demand.
Supply-Demand Imbalance in Denver: An Explosion of Housing Inventory
April 2025 witnessed record inventory levels in Denver, indicating a shift in the market conditions. The cooling buyer activity and high listings are posing a concern about the need for price corrections.
In April this year, the active listings in the metro area were 65% higher than last year. Not only this, but the observed numbers have also been the highest since 2017. With such a higher number of houses for sale, the total number of homes available for sale was 90% higher than the average availability between 2016 and 2019.
Condos and townhomes constitute the major percentage of the houses for sale. Homes are remaining on the market for longer periods as buyer activity is low. This imbalance is indicative of a market correction. As supply has outpaced the demand, competition among sellers has intensified. A fall in list prices has also been observed, with a 4% dip from last year.
What Led to an Increase in Listings and a Drop in Purchases
There are numerous reasons for the imbalance between the supply of homes and their demand. Here are a few reasons for the drop in purchases:
- Fewer people are migrating to Denver from other states.
- Insurance costs have increased.
- Demand for condos and townhomes fell.
- Affordability has declined as ownership costs have increased by 18% since 2022, but wages increased by 6% only.
The rental prices in Denver, however, fell quickly. Median rent in April 2025 was 7.1% less than the previous year. This further encourages people to delay buying homes and manage finances easily with a rented house.
Condos and townhomes are a major reason for this inventory explosion. They showed a 5.2% increase in contrast to last year’s data about the listing of condos and townhomes. The median list price for these attached homes fell 7.3%.
How Should Sellers Proceed?
Sellers have to be extra cautious to sustain the current market situation. Overpricing might land them in trouble, as 27% of the listed houses have already been offered a reduced price. However, price reductions alone may not address the slowdown in demand.
The homebuyers are also exploring the options with various criteria on the list. They need homes that do not need further repair. The updated, ready-to-move homes have a higher chance of being sold.
A rise in listings and weakening buyer interest in Denver might affect the expectations of those who invest in real estate. A hope for price appreciation met with lower prices and high competition. Buyers may see this as an opportunity, but rising costs and market challenges could limit their ability to act. As the market recalibrates, staying informed and agile will be crucial.
