Jan 26 - Yearly Reset

Closing Out 2025: A Familiar Market Finds Its Footing

As we close out 2025 and step into a new year, the Denver Metro housing market feels familiar. In many ways, this year closely mirrored both 2023 and 2024—defined less by dramatic swings and more by consistency. Activity followed a well-established seasonal pattern: peaking in the spring, tapering through summer, dipping slightly in August, a modest uptick in September, and then declining beginning in October, with the steepest drop-off occurring between Halloween and New Year’s Eve. Throughout the year, affordability, ownership costs, and mortgage rates remained the dominant forces shaping buyer and seller behavior.

December’s numbers reflect that expected year-end pause. Active listings at month’s end totaled 7,607, down 27.6% from November, while 1,775 new listings came to market. Many homeowners chose to step back during the holidays, planning to revisit selling once the calendar turns. Historically, active listings at month’s end decline an average of 18.4% from November to December, making this year’s decrease steeper than the long-term norm, yet still well within the boundaries of seasonal behavior. For context, the historical average number of active December listings (1985–2024) is 11,839, with a record high of 24,603 in 2007 and a record low of 1,477 in 2021—placing December’s 7,607 active listings at month’s end comfortably within a normalized range.

With inventory remaining elevated relative to recent years, homes continued to take longer to sell. In December, average Days in MLS increased to 67, with a median of 45 days. Buyers remain active and engaged, touring homes and watching the market closely, but the depth of available inventory has clearly extended decision timelines. This slower pace has been a defining feature of the market for much of the past three years and continues to influence how transactions unfold.

Sales activity softened alongside the season. Pending sales totaled 2,226, while 3,101 homes closed, reflecting the typical holiday slowdown as travel, weather, and end-of-year obligations take priority. Even so, demand hasn’t disappeared—it has shifted. Many first-time buyers are taking a longer-term approach, beginning the planning process now with the intention of purchasing in mid-2026. For many, the quieter months are less about immediate action and more about preparation.

Pricing remained steady as the year ended. The average close price ended December at $678,718, and the median close price came in at $575,000, showing modest declines both month-over-month and year-over-year. Homes continued to sell close to list price, with a 98.25% close-price-to-list-price ratio, reinforcing that values are holding despite longer timelines and shifting buyer behavior.

For Sellers

The end of 2025 underscored the importance of strategy. Many homeowners opted to temporarily withdraw their listings late in the year, planning to return in early 2026. With that anticipated return of inventory—combined with the traditional increase seen toward the end of the first quarter—sellers should be prepared for a more competitive environment. Pricing accurately, preparing homes thoughtfully, and aligning expectations with longer timelines will be essential as the market continues along its steady path.

For Buyers

Today’s market continues to reward preparation and patience. Inventory remains available, negotiation is part of the process, and homes are spending more time on the market. Mortgage rates have come down from recent highs, and activity has begun to pick up as the new year gets underway. Buyers who are prepared and stay engaged often find themselves better positioned as competition increases later in the year.

As we move into 2026, the Denver Metro housing market feels consistent. Prices have stabilized, inventory has normalized, and both buyers and sellers are operating with clearer expectations. Rates are down, momentum is building, and the market enters the new year with steadiness and direction.