Real Estate Right Now – August 2025

Denver’s housing market continues to be one of the most closely watched in the country, and for good reason. Mortgage rates, inventory, and affordability are driving big changes for buyers and sellers alike. As of August 2025, the average 30-year mortgage is sitting in the mid to high-6% range. That’s an improvement from last year’s painful peaks in the 7% range, but it’s still keeping many would-be buyers cautious. For those ready to jump in, 15-year loans offer some relief, and adjustable-rate mortgages are tempting buyers who are looking for short-term affordability. All of that is great, but in a market like this one, sellers are offering concessions for permanent buy downs as opposed to the temporary 3-2-1 style that we have seen over the last several years. This helps affordability and helps buyers qualify for homes that could otherwise be out of their range.

In Denver, the effect of higher rates is crystal clear. Buyers are more selective, and sellers are adjusting expectations. Homes that are priced right and move-in ready are still sometimes attracting multiple offers, but gone are the days of bidding wars on nearly every listing. Sellers who overprice are finding themselves sitting on the market longer, which is leading to more strategic price reductions. The average days on the market is higher than it has been since before the pandemic.

Inventory is gradually building across the metro area which is giving buyers more options than they’ve had in ten years!! Neighborhoods like Berkeley, Highlands, and Wash Park are still commanding top dollar, but buyers are finding negotiating room in suburban areas such as Aurora, Littleton, and Arvada. With the supply of homes in each of those areas, homes being move-in ready with everything done is the most important factor in considering whether they move the first weekend or not. Rental demand across Denver also continues to climb as many households choose to wait out mortgage rates, which is pushing rents higher and keeping affordability front and center.

Builders in the Denver metro are cautiously optimistic, though they face the same challenges seen nationally: labor shortages, regulatory hurdles, and high construction costs. We’re seeing more new builds on the outskirts of the city—in places like Parker, Castle Rock, and Thornton—where there’s room to grow. Builders with inventory are offering incentives right now to sell that inventory with things like permanent rate buy downs into the 5% range in some cases. 

Looking ahead, if mortgage rates dip into the low to mid 6% range as projected this fall, affordability will improve, and more buyers will re-enter the market. For Denver sellers, that could mean stronger demand heading into the late fall selling season. The market isn’t expected to return to the frenzy of a few years ago, but Denver remains one of the most resilient real estate markets in the country—and opportunities are there for both buyers and sellers who act strategically. If you or someone you know is considering making move, let's connect and discuss a path forward! Text is always the quickest way to get a response- my cell is 662.588.2420.