The Denver residential market is in a much different place than it was a few years ago. The 10-year average for new listings in September is 5,840 but we saw only 5,340 new listings during this September. Although this is lower than the average, the total number of listings has climbed to 14,679. Furthermore, we saw 1,997 sellers give up on selling and let their listing agreement expire. This is 60.4% more than September 2024 and more than double the long-term average. Meanwhile, the 10-year average for closings in September is 4,606, and we had only 3,427 closings. This shows that buyer demand continues to remain softer than average. The average 30-year mortgage rate, according to Freddie Mac, is 6.30%, which continues to subdue demand. Let's dive into the key market data for the Denver residential real estate market to understand what is happening with supply, demand, sales prices, and months of inventory for September 2025.
Supply
The total number of active listings at the end of September was 14,679. This continues the trend of historically high levels of inventory that has seemingly been transpiring since April of this year. Furthermore, the current inventory is up 13.5% compared to September 2024. The 10-year average for September active listings is 9,282, so we are significantly higher than that. The Denver market is experiencing a period of higher supply. This is further establishing the narrative that Denver is reaching a prominent buyers market.
As the report has not been yet released for September, the most recent report for detached home construction is August 2025. The Denver Metropolitan Statistical Area (MSA) pulled permits on 879 homes. This is lower than the five-year average of 1,035 for August. The National Home Builders Association recently reported that 38% of builders surveyed are offering discounts.
Overall, the market continues to have a surplus of supply and low demand. This is causing price stagflation and in some neighborhoods and product types, we are seeing values come down.
Demand
Showings are a great leading indicator for demand in the residential real estate market. There were 48,394 showings booked through ShowingTime in the Denver Metro Area during September. This is down (3.6%) compared to September 2024 and also down (15.2%) compared to August 2025. The average number of showings for September over the last six years is 68,743, highlighting that demand is weaker than historical averages.
Denver had 3,305 properties go under contract during September 2025, which is up 0.3% compared to September 2024.
There were 3,427 closings in September 2025 compared to 3,231 in September 2024, reflecting a year-over-year increase of 6.1%. When comparing this to August 2025, we saw a (1.6%) decrease.
The median days on the market for September increased to 36 days from 30 days in August 2025. Therefore, the market is still moving relatively quickly despite higher inventory levels. The current list price-to-close price ratio remained steady at 99.2%, indicating that sellers are generally receiving their asking prices. With that said, when we look at the original list price-to-close price ratio, we find a ratio of 96.3%. This means sellers are reducing their asking prices by nearly 3% before they receive an offer that is close to their asking price.
Therefore, demand remains soft but steady as we see continued pressure from higher interest rates and high property prices. The trend for 2025 appears to follow what we saw in 2023 and 2024. The lower level of transaction volume is very close to what we saw in during the tail end of the financial crisis.
Sales Prices
Long-term appreciation for Denver residential real estate averages around 6%, but current market conditions with higher prices, interest rates, and inventory are pushing some prices down. The current market is giving buyers more options than it did during the COVID frenzy.
During September, the median sale price for attached and detached properties dropped slightly from August to $580,000. However, this is up 1.8% from a year ago. When compared to August 2025, the median price decreased (0.6%).
Months of Inventory
The months of inventory metric is a great indicator to watch for market trends. A seller’s market typically has 0-3 months of inventory, a balanced market has 4-6 months, and 7+ months indicates a buyer’s market. With 14,679 listings on the market and 3,427 closings in September, we have 4.0 months of inventory. If we measured inventory in weeks, that would be 18 weeks. September 2024 had 17.16 weeks. This places the market in a balanced position, which often leads to stable pricing trends.
Final Thoughts
In summary, supply, demand, median sales price, and months of inventory are key metrics to watch for understanding market trends. Supply is higher than it has been in years, providing buyers with more choices. Demand, while steady, is softer compared to historical norms due to high prices and interest rates. The median sales price shows some softening, due to increased inventory and tempered demand. Lastly, months of inventory indicate a balanced market, setting the stage for flat to moderate appreciation throughout 2025.
Here is a link to the full Market Presentation: