Greater Denver Area Real Estate Market Report from June 2025

 
 

As we wrap up the first half of 2025, one theme is emerging loud and clear across the Denver Metro real estate market: success hinges on aligning expectations with present-day conditions, according to the Denver Metro Association of Realtors.

Both buyers and sellers entered the year with hopes shaped by early forecasts-many anticipating falling interest rates and renewed buyer activity.

But the reality has been far more nuanced. Mortgage rates have remained elevated, inventory is rising across all price points and affordability constraints are increasingly driving buyer behavior.

The balance of supply and demand has shifted in a direction the Denver market has not seen in quite some time. A sharp rise in new listings in April and May significantly outpaced buyer demand, leading to longer days on market and more frequent price re-ductions. In June, new listings decreased by 18.43 percent compared to May. A seasonal trend that aligns with historical patterns, as inventory typically peaks in May or June.

This growing supply is starting to moderate price growth. In June, the median sale price for detached homes rose a modest 0.13 percent month-over-month to $665,895. Attached homes showed no change, holding steady at a median price of $400,000.While price stability can be encouraging, the underlying shift is clear: upward price pressure has softened, particularly in segments with the most inventory.

Sellers are having to adapt to a slower pace. In June, the median days in MLS climbed to 16 for detached homes, a 60 percent increase from May, and 30 days for attached homes, up 20.22 percent. Inventory levels now exceed two months across all price points. High-end properties are experiencing the most significant drag; detached homes priced above $2 million now carry nearly six months of inventory, while attached homes priced between $1 and $2 million have a supply of more than 10 months.

The Denver Metro real estate market at midyear 2025 is a study in recalibration. Buyers and sellers who began the year operating on outdated assumptions- expecting lower interest rates, surging competition or guaranteed appreciation are now confronting a market that demands flexibility and realism. Decisions based on what should be happening are leading to hesitation, missed opportunities and stalled deals.

For sellers, pricing based on last year's peak or early 2025 optimism is proving to be a risky strategy. Today's buyers are cost-conscious, deliberate and quick to pass over listings that are unprepared or overpriced. Real-time market awareness, achieved through data-driven pricing strategies, competitive positioning and responsiveness to buyer feedback, is essential for achieving a timely sale.

For buyers, waiting for the "perfect" rate or perfect timing can be just as costly. While inventory is up and prices are stabilizing, desirable homes are still moving and the cost of delay in a high-rate environment adds up fast.

We do not have a bad market; it's a different market. In this new environment, those who stay grounded, informed and responsive will be the ones who succeed. In 2025, we are all navigating the market we have, not the one we expected. Real-time awareness is the most valuable asset buyers and sellers have

Learn more about the market from the Denver Metro Association of Realtors.

Keep reading for an In-depth breakdown on properties sold for $1 million or more by West + Main Agent Michelle Schwinghammer.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

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Tackling Home Financing and Down Payment Misconceptions

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Despite the current attention around buyers paying all-cash for homes, the majority of home buyers finance their home purchase.

Among primary residence buyers, 74% percent financed their home purchase, a share that rises to 91% among first-time buyers. When financing a home, buyers typically have a down payment. But how much is it? And where does it come from?

Two of the biggest unknowns among home buyers are as follows:

  • What is the typical down payment?

  • What is needed to enter homeownership?

This critical knowledge informs the potential buyer on just how much to save and—just as importantly—how long that process may take. Seeking the right source is better than relying on outdated information or, worse still, misinformation. Unfortunately, 97% of NAR members surveyed worked with clients who consulted family members for advice, instead of a real estate agent, even if the family member would not live in the home. Let’s take a look at the real data.

While many potential buyers believe they need a down payment of 20% for their first home purchase, the typical down payment for first-time buyers has ranged from 6% to 9%, dating back to 2018. Going way back to 1989 (when the NAR first started collecting this data), the typical down payment has only ever been as high as 10%. However, for repeat buyers, the typical down payment was 23% last year. In recent years, the down payments for repeat buyers have steadily increased as housing equity for owners has grown. By contrast, in 2014, repeat buyers put down only 13% of the purchase price as a down payment.

Buyers have many loan options. The majority of all buyers use conventional financing to purchase a home. Among first-time buyers, 29% used an FHA loan. FHA loans allow borrowers to put down just a 3.5% down payment. Nine percent of first-time buyers used a VA loan. For VA loans, no down payment is required.

A mortgage broker or housing counselor can discuss the loan options available to buyers. Another resource for potential home buyers is the Down Payment Resource. There is an interactive website that directs potential buyers to state and local programs for which they may qualify. Programs may be available in local areas to assist with down payments, but also with student loans, property taxes, and even home renovations.

The last question may be this: Where does that down payment money come from? For nearly 70% of first-time buyers, the source of their down payment is savings. Twenty-five percent of buyers used a gift from a friend or relative. The share receiving family help has declined from a high of 36% in 2010. In 2010, there was a surge in first-time home buyers entering the market with the First-Time Home Buyer Tax Credit. Family may have encouraged buyers to enter the homebuying process and provided any help they could at the time. Additionally, as the age of first-time buyers has increased to an all-time high of 38 years old, it could be uncomfortable to ask family for help in purchasing their first home.

The share of first-time buyers who used financial assets for their down payment has increased in recent years. Twenty-one percent of first-time buyers used the proceeds from stocks or bonds, a 401(k), an IRA, or even cryptocurrency. To give this historical context, from 1997 to 2002, just 8%-11% of first-time buyers used financial assets. This uptick may be due to the increased number of younger investors or wealthier first-time buyers in the housing market.

While the share of first-time buyers who use inheritances for their down payment is still under 10%, it is worth noting that this share is at an all-time high. Seven percent of first-time buyers used a generational transfer of an inheritance to help them become homeowners. Additionally, due to higher home prices, buyers may need to utilize multiple sources to put together a down payment.

Read more at NAR

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Mortgage Rates Drop Ahead of Independence Day Weekend

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Mortgage rates continued to fall Thursday, slipping to a 12-week low ahead of the holiday weekend as markets awaited key economic data before the next Federal Reserve policy meeting.

The average rate on 30-year fixed home loans decreased to 6.67% for the week ending July 3, down from 6.77% last week, according to Freddie Mac. Rates averaged 6.95% during the same period in 2024.

It marked the biggest one-week decline in mortgage rates since March, and the lowest level for rates since early April, when President Donald Trump's Liberation Day tariff announcement sent long-term bond yields into nosedive.

However, this week there was little in the way of headlines to drive mortgage rates lower, and investors may have simply been repositioning their portfolios for the end of the month and the second quarter.

Financial markets had also been growing more optimistic about the chances of a Federal Reserve rate cut later this month—although those hopes were dashed on Thursday morning when the June jobs report showed robust employment growth that beat expectations.

Regardless of why they are falling, the move lower for mortgage rates ahead of Independence Day will come as welcome news for prospective homebuyers struggling to find a home in their budget.

"Declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market giving prospective buyers an advantage,” says Sam Khater, Freddie Mac’s chief economist.

New listings and active inventory continued to rise on an annual basis for the week ending June 28, and homes spent longer on the market, according to the Realtor.com® economic research team's weekly housing update.

Mortgage purchase applications jumped 16% last week compared to one year ago, showing renewed interest from buyers after a slow spring season, according to data from the Mortgage Bankers Association.

The uptick follows sluggish activity in May, when sales of new homes dropped 6.3% compared to a year earlier, and existing home sales dipped 0.7% annually.

"The reduction in sales is leading to slightly higher inventory levels and will help create a more buyer-friendly housing market, but the process is expected to be a gradual one as economic uncertainty persists," says Realtor.com Senior Economist Anthony Smith.

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends, like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to go up. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

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As Featured in West + Main Home Magazine: The House that Became a Home

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Rob + Jenn Bennett

““We love spending time here & hosting friends and family—it works so well for bringing everyone together.”
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— Rob + Jenn Bennett

When W+M agent Anne Collins’ clients, Rob + Jenn Bennett, purchased their home five years ago, they saw beyond the wear and tear of its rental years. Originally built in 2005, with an addition in 2012, the home had strong bones but needed some attention to bring cohesion to its various updates over the years.

“It just needed some love,” they said. Their vision was threefold: refresh the worn areas like bathrooms and flooring, create a more unified design between the original home and the addition, and transform the lower-level entry into a welcoming, functional space for both daily life and entertaining.

Since they were touching so many areas of the home, they knew professional guidance was essential. Designer Katie Becker helped them refine their style, ensuring consistent materials and finishes throughout, while contractor Richard Hedley and his team managed the execution. “Working with a designer was key,” they shared. “Her detailed plans and material selections allowed the contractor to provide an accurate estimate and kept the project on track.”

As the renovation progressed, their original scope expanded. Rather than taking on multiple projects over the years, they decided to complete as much of their wishlist as possible while the experts were already on-site. “We wound up replacing countertops and painting the kitchen island while we had the materials and tradespeople available,” they explained.

Now, the home finally reflects their lifestyle and tastes. Rob’s favorite transformation? The mudroom-turned-entryway. “It’s amazing how removing a half-wall and adding cabinetry totally transformed the space—both in look and functionality.” For Jenn, it’s the built-in bookcases in the lower-level den. “This all started because I ran out of space for my book collection,” she laughed. “Now, we have a beautiful focal point that completely changed how we use the room.”

Looking back, they’re grateful they took the leap when they did. “Instead of waiting for the ‘right time’ to make these updates, we get to enjoy them now,” they said. “We love spending time here and hosting friends and family—it works so well for bringing everyone together.”

 

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Just Listed: Turnkey End-Unit Townhome with Mountain Views in Willowbrook

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Welcome to 329 N Chipmunk Circle – a beautifully updated 3-bedroom, 2-bath townhouse nestled at the end of a quiet cul-de-sac in Silverthorne’s sought-after Willowbrook neighborhood.

This 1,305 sq ft end-unit offers added privacy and exceptional outdoor space, including a fully fenced-in patio with a private hot tub — perfect for soaking under the stars.

Enjoy stunning views of Buffalo and Ptarmigan Peaks right from your doorstep. Inside, the home features thoughtful updates throughout, including raised kitchen countertops, modern finishes, radiant heating and a cozy yet open layout ideal for mountain living or weekend getaways.

Just steps away from Trent Park and the Willowbrook Summit Stage bus stop, this location offers both convenience and tranquility. Whether you’re looking for a full-time residence, second home, or investment opportunity, this turnkey property delivers mountain charm, upgraded comfort, and unbeatable access to everything Summit County has to offer.

Most furnishing are negotiable. 4 foot tall crawl space great for extra storage

Listed by Gabe Martin for West + Main Homes. Please contact Gabe for current pricing + availability.

 
 
 

Have questions?
West + Main Homes
(303) 935-8787
hello@westandmain.com

Presented by:
Gabe Martin
970-275-1122
gabe@westandmainhomes.com


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