August offers more of the same

Metro Denver Real Estate Market Update

The housing market in Metro Denver is currently experiencing a period of stagnation, with both buyers and sellers showing caution in their transactions. In August, 3,636 homes and condos were sold, a 5.8% decrease from July and a 5.6% decrease from the same period last year. Additionally, new listings decreased by 12.5% month-over-month and 8.4% year-over-year, leading to a 6.7% decrease in active listings at the end of August.

Despite the decline in active listings, there has been a 21.8% increase compared to August 2024. Amanda Snitker, chairwoman of the DMAR Market Trends Committee, noted that as we move into the fall months, the market is not expected to see significant changes. Lower mortgage rates are anticipated following a weaker-than-expected jobs report, which may improve affordability in the near future.

The median price of detached homes sold in August was $649,000, while condos and townhomes had a median price of $385,000. Listings spent a median of 30 days on the market in August. Nationally, there are currently 36% more sellers than buyers in the housing market, with Metro Denver seeing an even larger gap of 61.2%.

Buyers are gaining more bargaining power, leading to an increase in price cuts and contract cancellations. Despite this, many potential buyers are still struggling to afford homes. However, with home prices remaining stagnant or decreasing over the past two years, combined with income gains, Denver could return to 2018 levels of affordability before other metro areas.

According to Redfin, if 30-year mortgage rates drop to 5.5%, Denver could achieve 2018 affordability levels by October of next year. If rates remain at 6.7%, it may take until November 2028. Stay updated on real estate and business news by signing up for our weekly newsletter, On the Block.