Denver Market Update: What the May 2025 Numbers Tell Us About Today’s Real Estate Landscape
As Denver’s spring market rolls into summer, May brought continued change—and opportunity—for both buyers and sellers. According to the Denver Metro Association of Realtors® (DMAR), the market remains active but continues to normalize compared to the rapid pace of the past few years. If you’re thinking about making a move, here’s what the latest data tells us about current trends and where things might be headed next.
Active Listings and New Inventory Rise
Buyers in May enjoyed more options than they’ve had in months. Active listings at the end of May reached 7,337—up 13.65% month-over-month and 31.94% year-over-year. New listings also rose, with 5,899 homes hitting the market, a 14.45% increase from April and a 5.61% jump from May 2024. This increase in supply is helping to rebalance the market and ease some of the pressure we saw earlier in the year.
However, while these gains are encouraging, inventory is still well below the long-term average for Denver, suggesting that demand remains strong even as buyer behavior shifts.
Sales Volume Climbs, But Homes Take Longer to Sell
Closings picked up in May, with 3,758 residential properties sold—an 8.94% increase from April and a 1.97% boost year-over-year. Pending sales were also up 3.75%, showing that many buyers are still motivated despite higher borrowing costs.
However, homes are sitting longer. The median days on market rose to 14 days, up from 11 in April and 10 in May 2024. This marks a continued trend of buyers taking more time to make decisions and sellers needing to be more strategic about pricing and presentation.
Prices Hold Firm Despite Increased Inventory
The median close price for all residential properties in May was $602,550—a slight increase of 0.43% from April and 1.28% year-over-year. Detached single-family homes had a median price of $663,500, while attached properties (condos and townhomes) came in at $430,000. These figures show that while price appreciation has slowed compared to previous years, values remain strong and stable across most segments.
Average close price also inched up to $715,108—up 2.15% month-over-month and 1.32% year-over-year—indicating continued demand, particularly for well-located, move-in-ready homes.
Price Reductions and Negotiation Power Increase
As inventory grows and homes take longer to sell, sellers are becoming more flexible. The close-price-to-list-price ratio dipped slightly to 99.64%, down from 100% in April. While still close to full asking price, this shift shows that buyers are regaining some negotiating leverage—especially when homes are overpriced or linger on the market.
Roughly 41% of all closed listings in May had a price reduction before going under contract. This underscores the importance of strategic pricing from day one. Homes that are accurately priced, well-prepared, and effectively marketed are still moving quickly—but the margin for error is shrinking.
What Does It All Mean for Buyers and Sellers?
For buyers, the numbers are encouraging. There’s more inventory, slightly more negotiating room, and less of the frantic pace that defined past markets. If you’ve been waiting for the right time to re-enter the market, this could be your opportunity—especially with less competition in many price brackets.
For sellers, it’s important to stay grounded in market reality. Pricing based on outdated comps or past peak markets can lead to longer days on market and eventual reductions. A well-positioned home, however, still has the potential to sell quickly and for a strong price.
In Summary
This May, the Denver real estate market showed clear signs of transition. Inventory is up, buyers are active but deliberate, and prices are steady. Whether you're planning to buy or sell, success in this market comes down to preparation, strategy, and local expertise.
Have questions about what these trends mean for your next move? Let’s connect. PorchLight agents are here to guide you with data-driven insight, tailored advice, and expert support at every step.
