1. Market Dashboard
Denver's housing market in April 2025 showed steady but cautious activity. While prices edged slightly higher, inventory rose sharply, giving buyers more room to negotiate. Sales volume increased month-over-month, but remained below historical spring peaks. The standout trend? Denver reached its highest inventory level in nearly five years, shifting dynamics toward a more balanced market.
Sources: Redfin, Realtor.com, Zillow, Freddie Mac, REcolorado, Apartment List
2. Prices & Affordability
Home prices in Denver remained stable in April, with the median sale price up just 1% year-over-year to $604,000. This stability contrasts sharply with the price surges seen in previous spring markets. However, Denver's median price per square foot fell 7.5% YoY to $365, suggesting buyers are targeting smaller or lower-cost homes to cope with high interest rates.
Affordability remains a hurdle. With mortgage rates hovering at 6.7%, monthly payments are significantly higher than a year ago, despite flat prices. A $600K mortgage at current rates translates to a monthly payment roughly $800 higher than at 3% rates in 2021. Zillow and Redfin data indicate minor price drops for homes across most size categories, indicating some softness and room for negotiation—especially on homes above $900K.
In terms of affordability ceilings, Denver appears to be finding its plateau. High incomes have propped up purchasing power, but buyers remain rate-sensitive and strategic in offers. Seller overpricing often results in markdowns later in the listing period, underscoring how affordability pressures are keeping appreciation in check.
3. Inventory Dynamics
Denver’s inventory story in April 2025 was all about expansion. Active listings in the metro reached ~12,436, marking a ~50% year-over-year increase. This brought months of supply to approximately 3.2 months, up from just 2.2 months a year prior. This trend signals a move from a tight seller's market to a more balanced one.
Sellers appear more confident heading into peak season—new listings rose 18% YoY, with many looking to capitalize on stable pricing. The increase in supply gives buyers more leverage and time. Homes are still moving fairly quickly, with a median of 14 days on market, but that’s 5 days slower than last year.
A notable 42.7% of homes experienced price drops, reflecting both ambitious initial pricing and cautious buyer behavior. With buyers less rushed and more inventory to choose from, the dynamic is shifting. Sellers now need to price strategically and may need to offer concessions to close deals.
4. Buyer & Seller Behavior
April brought a seasonal bump in activity, but buyers remain calculated. Closed sales rose 11% from March and 3% YoY, totaling 3,982 homes. Pending sales were up 5% YoY, indicating ongoing buyer interest, though they dipped 3% month-over-month—possibly due to a mid-month rate increase.
Buyers in mid-tier price brackets ($500K–$600K) remained the most active, and listings in that range saw the shortest market time. Homes above $900K, by contrast, often required longer listing periods or markdowns.
Sellers are adapting with more realistic pricing and, in some cases, incentives like rate buydowns or covering closing costs. The sale-to-list ratio dipped to 99.4%, down slightly from March, meaning the average home sold just under asking. And while bidding wars haven’t disappeared, only 28.5% of homes sold above list price, compared to 33% last year—suggesting less intense competition.
5. Lending Conditions & Mortgage Rates
Mortgage rates returned to higher territory in April after a dip in March. The average 30-year fixed rate hit 6.7%, up about 0.2 percentage points. While this rate is consistent with late-2024 averages, it continues to put pressure on monthly affordability.
Higher rates have forced some buyers to pause or revise their budgets. For instance, a $500K mortgage at 6.7% requires ~$3,200/month in principal and interest alone—compared to ~$2,500/month at 5%.
Lending standards remain firm, with no major loosening in underwriting. Buyers with strong credit and stable incomes still qualify, but there’s little tolerance for elevated DTI ratios. Experts believe that rates may ease later in 2025, but for now, financing costs remain the market's biggest affordability challenge.
6. Construction, Rentals & Broader Trends
Denver’s construction pipeline showed renewed strength in April. Builders pulled 1,565 new permits, a 38% increase YoY and up 51% from March. Single-family permits accounted for about 874 units. This jump reflects builder confidence in the metro’s long-term housing demand.
On the rental side, median rent fell 5.7% YoY to about $1,687/month. While monthly rent ticked up 0.8% from March, this still represents a softening trend. Fewer bidding wars on rentals and increased multifamily construction are providing more tenant options.
Investor activity remains muted. High borrowing costs and declining rental yields have pushed many institutional buyers to the sidelines. Locally, owner-occupiers continue to dominate sales, particularly in the sub-$700K market.
7. Expert Opinions or Local Insights
"With the highest inventory levels in nearly five years, consumers are in a better situation to negotiate for better deals," said Lawrence Yun, Chief Economist at the National Association of Realtors. He emphasized the slow but steady move toward market balance.
Denver-area agents echoed this sentiment. Colorado's April report highlighted "steady buyer momentum" and noted a "healthy pace of new listings." One local agent shared, "Buyers feel more empowered now—homes under $700K are still moving fast, but anything above that needs to be priced right or it just sits."
8. Conclusion
April 2025 marked a steady yet strategic month for Denver’s housing market. With inventory up 50% YoY, prices largely flat, and sales activity gradually improving, the city is shifting into a more balanced housing environment. While rising mortgage rates continue to limit affordability, buyers now have more leverage and choice than they’ve had in years.
The big headline: Denver’s inventory reached a 5-year high, giving the market breathing room. The concern: Mortgage rates are eating into buyer budgets, keeping price gains in check.
This has been your latest Denver Housing Market Snapshot, part of Vontive’s ongoing series to keep real estate professionals informed with clear, trusted insights into the metro's housing trends.
