I’ve been collecting my thoughts over the year by making anecdotal observations from my experience in the field.  Sometimes what we experience in our daily transactions is later reflected in the stats that are reported.  The front range is comprised of many micro markets and categories of consumers that have all behaved differently this year.

Denver has been on a massive appreciation streak since 2020 (and even before that) due to a shortage of inventory – until 2025.  Especially the last 6 months of 2025 after we got through the spring selling season and moved into the summer (vacation time), and fall (holiday season); we saw days-on-market go up and prices really soften.  Yes, aggresively priced homes that are updated and in good neighborhoods can still elicit bidding wars; but this has become much less common.

Here are the highlights of the Denver metro real estate market in 2025:

Downtown Denver – The zip code 80202 is downtown Denver.  This zip code has been tough.  I sold a couple loft / condos this year and showing activity was really low so we felt really fortunate to procure a buyer and close.  This area suffers from a combination of issues such as fewer employees working in their downtown offices, and instead working from home.  Commercial office space vacancy rates are at an all-time high.  Additionally, expensive HOAs, due to insurance costs and large assessments for big capital projects are a deterrent for buyers.

Outskirts of town – When the market softens in Denver, which happens every 7 to 10 years, the neighborhoods on the edge of civilization take the biggest hit.  The factors that contribute are competition from home builders who can undercut the resale market with incentives; and a lack of amenities, dining or social gathering spots.  People also like a reasonable commute time to work.

First Timers – This sector has been impacted by interest rates and lack of affordable housing.  You need a really good salary to afford a detached single family home in Denver.   A lot of first time home buyers have had to by condos or townhomes; or just rent as prices have gotten out of reach for them.  When these buyers don’t buy, the trade-up buyers have difficulty selling their homes and upgrading.

Federal Employees & Tarrif Impacted Businesses – I don’t intend to be political here but I’ve had several potential clients in these types of jobs and they have held off on real estate decisions for fear of their business suffering or not having a job from one month to the next.  If you are fearful that you will get laid off and have difficulty finding a job again if you do, than you are probably leery of purchasing real estate.

Fix & Flippers  – Every day I get a text or two from investors looking for off-market deals.  Apparently there are A TON of fix and flippers and wholesalers looking for deals to keep their money moving and their crews busy.  I sometime wonder if low priced distressed sales are easier to get done that a moderatly  updated home.

The silver lining is that a lot of homeowners have equity from owning a home over the long term and have good financing, especially if you refinanced in 2020-2021.  So, we aren’t seeing a ton of foreclosures or short sales.  I think as the numbers come in we will see Denver down about 3% in the average price and hopefully that’s where it stabilizes.