Market Update | March 2025

As of March 2025, the Denver housing market is showing signs of renewed energy and cautious optimism. After a year marked by fluctuating interest rates and affordability challenges, the spring season is bringing moderate growth and increased activity—particularly in the detached single-family home segment.

According to the Denver Metro Association of Realtors (DMAR), detached home sales are projected to rise by 4–6%, supported by seasonal demand, slightly expanded inventory, and growing consumer confidence. In contrast, the attached home market—such as condos and townhomes—is experiencing a 7–10% decline in sales, largely attributed to rising HOA fees that have begun to impact buyer affordability and preference.

Home prices remain relatively stable, with median closed prices expected to increase by 0–3% across the metro area. This slow but steady appreciation is a welcome sign for sellers who have been waiting for more favorable conditions, while still providing buyers a manageable entry point into the market.

Mortgage rates are hovering between 6.25% and 7%, which continues to influence buyer behavior and lending strategies. To counterbalance rate sensitivity, builders and developers are increasingly offering mortgage buydown incentives—a trend that's helping buyers secure more favorable financing terms.

On the inventory side, the market is seeing a slight uptick in active listings compared to earlier in the year, providing buyers with more choices but also signaling a more competitive environment for sellers. Strategic pricing and property presentation are key in this transitioning market.

Despite these improvements, affordability remains a central concern, especially for first-time buyers and those in lower price brackets. The combination of high home prices, rising insurance and HOA fees, and lingering inflation means that many buyers continue to navigate tight budgets.

Overall, the Denver real estate market in March 2025 reflects a balanced yet cautious recovery, with opportunities for both buyers and sellers—especially for those who are well-informed and guided by data-driven decisions.