The Denver residential market is an interesting study. The 10-year average for new listings in April is 6,458, but we saw 7,285 new listings. This shows more sellers are willing to sell, giving buyers more options. The 10-year average for closings in April is 4,480, but we saw 3,949 closings. This shows buyer demand has remained weaker than average. The average 30-year mortgage rate, according to Freddie Mac, is 6.81%. Higher interest rates continue to have an impact on real estate purchases. Let's dive into the key market data for the Denver residential real estate market to see what is happening with supply, demand, sales prices, and months of inventory for April 2025.
Supply
The total number of active listings at the end of the month came in at 13,206. We have not seen inventory like this in a while. In fact, the last time we saw five five-digit inventory in April was 2013. The April inventory of listings is 52.8% higher than April 2024. The 10-year average for April is 6,887 active listings, so we are nearly double that.
The most recent report for detached home construction starts is March 2025. The Denver Metropolitan Statistical Area (MSA) pulled permits on 701 homes. This is lower than the five-year average of 1,005 for March.
Overall, our market has plenty of supply. Let's look at demand.
Demand
Showings are a great leading indicator of demand in the residential real estate market. There were 61,516 showings booked through the largest showing service, ShowingTime, in the Denver Metro Area during April. This is up 1.7% when compared to April 2024 but is down (8.8%) compared to last month. The average amount of showings for April, over the last six years, is 80,716, so we can see demand is still weaker than the historical average.
Denver had 3,981 properties go under contract in April 2025. This is down (0.6%) compared to April 2024, and down (6%) compared to last month.
There were 3,949 closings in April 2025 compared to 3,859 closings in April 2024, so we saw a 2.3% increase YOY. We also saw a 11.3% increase compared to last month. The volume of closings is very similar to 2024 and 2023, and we expect the trend for the year will follow the same path.
The median days on the market for April decreased to 13 days, so the market is still moving! Based on the trends we see shorter marketing times in the spring and summer selling season. The list price-to-close price ratio stayed at 100.00%. This metric looks at what properties sold for in relation to the list price at the time of the contract. Therefores, sellers are generally getting what they are asking. With that said, many sellers are still aggressive on their initial list price and eventually do a price reduction.
All in all, demand for housing is softer right now due to the higher property prices and higher interest rates. Let’s look at the median sales price.
Sales
The long-term average appreciation for residential real estate is 6%. Higher prices and higher interest rates will continue to limit appreciation in the short run. In addition, the larger inventory will have an impact on appreciation as buyers have more options than in previous years.
This month, the median sale price for attached and detached properties is $600,000, which is the same as April 2024.
Let’s look at months of inventory now.
Months of Inventory
The months of inventory metric 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 13,206 listings on the market and 3,949 closings in April, we have 3.3 months of inventory. Therefore, we anticipate home price appreciation to be around 1-2% during 2025.
All in all, months of inventory is a great metric to watch.
Final Thoughts
In summary, supply, demand, median sales price, and months of inventory are ideal key performance indicators to watch for market trends. Supply is higher than it has been in a while, but the median days on market is still low. Demand is steady and increasing along the seasonal trajectory even with higher prices and higher interest rates. We believe there is a tremendous amount of pent-up demand happening right now and as soon as mortgage interest rates come down 1-2%, a lot more buyers will enter the market. The median sales price does have some seasonality to it based on the mixture of properties sold but prices appear to be stable. Lastly, 3 months of inventory is still quite low compared to the Great Recession.
To read and view the full presentation, click here: Denver Metro Residential Market Update April 2025.pdf