Denver Housing Market Update: Subtle Shifts in the September 2025 data

Housing data is a lagging metric, meaning in October, we study September's sales and September always brings a natural shift in the Denver housing market. Not just because of the calendar, but because life changes pace. Summer vacations wind down, kids head back to school, and both buyers and sellers settle into new routines. This year, that seasonality aligned with a remarkably steady market.

Throughout 2025, sales, prices, and overall tone have remained consistent. The close of Q3, however, marked a quiet moment of recalibration. Interest rates — which have shaped much of this year’s activity — are finally showing early signs of easing.

A Market of Micro Adjustments

The Denver metro market isn’t swinging wildly as it did in 2020 through 2022. Instead, we’re seeing a series of micro adjustments. These small movements may feel uneventful compared to the dramatic cycles of years past, but they reflect a maturing, more nuanced market — one that demands tenacity, trust, and expertise on both sides of the transaction.

Inventory and Buyer Trends

Options continue to expand for buyers. New listings in September increased slightly for both attached and detached homes, up 12.74% and 3.87%, respectively. Active inventory rose 17.62% year-over-year and an impressive 70.17% compared to 2022.

Buyers are favoring detached homes, with sales volume up 6.55% year-over-year, while attached home sales fell by 16.78%. The increased costs of insurance and community dues in attached properties are shaping that shift.

Pricing and Market Timing

Despite widespread price reductions, detached homes saw only a minor 1.79% month-over-month dip in median sale price, and attached homes actually rose slightly by 1.17%. Year-over-year, detached home prices are still up 1.33%. Days in the MLS increased from 30 to 35 — a 40% increase from this time last year — making pricing strategy the most crucial factor for sellers right now.

Interest Rates and Buyer Sentiment

The Fed’s recent 25-basis-point cut brought the lowest mortgage rates of 2025 so far. Still, it hasn’t spurred a rush of new buyers. Many remain cautious, waiting for more clarity around inflation and employment before making a move.

What This Means for Buyers

This fall offers opportunity for those ready to act. More listings and a steadier pace mean you have time to find the right fit — and leverage to negotiate on terms and pricing. Detached homes, in particular, present strong options heading into Q4.

What This Means for Sellers

For sellers, precision is key. Buyers are discerning, and homes that are priced correctly and marketed effectively are still moving. Overpricing leads to longer days on market and, ultimately, larger reductions. Partnering with an agent who understands both pricing data and buyer psychology is essential in this more nuanced environment.

If you’d like to see how your specific neighborhood stacks up, contact FORM at Compass Denver for a detailed snapshot of local data and insights.