Denver Residential Market Update For December
December brought typical year-end shifts to the Denver residential market with more closings, fewer new listings, and longer days on market. Although interest rates continue to fluctuate within a narrow range, they have dropped down to 6.16% presently. The 10-year average for expired listings in December is 1,521, but we are presently looking at 3,257 expired listings as of this December, so we are well above the long-term average. However, the months of inventory went down to 3 months in December. Let’s dive into the key market data for Denver residential real estate market to see what is happening with supply, demand, sales prices, and months of inventory for December 2025.
Supply
In December, we had 2,032 new listings hit the market. This was down (32.8%) from November, and it was down (3.8%) from 2024. This would limit the options for potential buyers.
The total amount of active listings at the end of the month was 9,451. This is down (23.3%) from November 2025. The 10-year December average from 2015 to 2024 is 6,233 listings, so we are also above our long-term average for active listings.
The most recent report for detached home construction starts is August 2025. The Denver Metropolitan Statistical Area (MSA) pulled permits on 485 homes. This is lower than the five year average of 873 for August. Year to date construction starts for 2025 compared to the same period in 2024 shows a (15.7%) decline.
In terms of active listings, the supply is in a better position compared to 2023 and 2024 but in a worse position for new construction starts.
Demand
Showings are a great leading indicator for demand in the residential real estate market. There were 31,254 showings booked through the largest showing service in the Denver metro area during December.
This is down (4.3%) when compared to December 2024. The average amount of showings for December, over the last five years, is 41,565. Therefore, we have fewer showing requests than previous years.
Denver had 2,083 properties go under contract in December 2025. This is down (21.2%) compared to November 2025 and is also down (4.9%) compared to December 2024.
There were 3,022 closings in December 2025 compared to 2,725 in November 2025, representing a 10.9% increase. A year ago, we had 3,123 closings in December 2024, so the volume of closings is down (3.2%) YOY.
The median days on market for December was 44 days. This means half of the properties listed are under contract in 44 days or less.
The list price to close price ratio held steady at 99% indicating that sellers are generally getting what they are asking.
All in all, demand for housing is softer when we look at showings and when we look at closings. Let’s look at the median sales price.
Sales Prices
In December, the median sales price decreased from $571,995 to $565,000. This metric includes detached and attached properties. The median price decreased (1.2%) over November and is now only down (0.9%) from December 2024.
The long-term average appreciation for residential real estate is 6%. Higher prices and higher interest rates will continue to temper appreciation in the short run. Tight inventory is helping to prop up the market.
Although prices are down slightly from last year, we are encouraged to see the median price increasing as we get through the winter season.
Let’s look at months of inventory now.
Months of Inventory
Months of inventory is a great indicator to watch for market trends. Typically, a seller’s market has 0-3 months of inventory. A balanced market has 4-6 months of inventory, and 7+ months of inventory is a buyer’s market. In a seller’s market prices go up. In a buyer’s market prices go down.
With 9,451 listings on the market and 3,022 closings in December, the months of inventory is at 3 months or 13.40 weeks of inventory. Therefore, the inventory is relatively lower when compared to the demand.
All in all, months of inventory is a great metric to watch.
Final Thoughts
In conclusion, supply, demand, median sales price, and months of inventory are ideal key performance indicators to watch for market trends. Supply is way higher than the record lows of 2021 and 2022 and is also higher than the long-term average. Overall demand continues to remain softer with high interest rates. We believe there is a tremendous amount of pent up demand happening right now and as soon as rates come down, more buyers will enter the market. Although 3 months of inventory indicates a relative seller’s market, this is historically commonplace for the Denver residential market in December.
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