May 2025 Housing Market
Denver & National: What is the REAL Real Estate News?
Have you been listening to the news and feeling confused about what’s really happening in the real estate market? You’re not alone. This article breaks down both the local market here in Denver, Colorado, and the national housing market. We’ll explain what’s going on—and why—so you can make sense of the headlines.
Questions that will be answered:
- Are prices are rising or stalling
- Where does the Data come from
- Why listings are up but sales are soft
- What’s happening in your neighborhood vs. the headlines
- And whether now is a smart time to act
1. Are Prices Rising or Stalling?
Yes—to all of the above!
The current housing market can show varying trends depending on your location—prices may be rising, stalling, or even declining. Here’s what you need to keep in mind: the answers you seek are specific to your unique situation and neighborhood. Additionally, timing is important. This article was written at the end of June and is based on housing data collected in May, so it may not accurately reflect the current state of the market. Over the past 45 days, changes in the job market, political landscape, and consumer confidence have all influenced market dynamics.
2. Where does the Data come from?
When looking at both the national and local housing markets, remember that the numbers include everything from rundown “swamp shacks” to luxury homes in the top 1%—as well as seasonal hot spots where properties are bought as second homes. Rising costs of materials and higher interest rates have cooled both rentals and travel demand, which affects all markets differently. This wide range of properties and conditions is important to keep in mind when you see national or local averages, because they often don’t reflect what’s happening in your specific price point or neighborhood.
3. Why are listings up but sales are soft?
Confidence—both locally and nationally—has shifted dramatically. Mortgage rates have more than doubled from their all-time lows, while home insurance costs are rising in areas hit hard by natural disasters, including Colorado’s hailstorms and wildfires. Add to that the increases in property taxes, recent job losses, and an uncertain political climate, and it’s clear why many Americans are feeling uneasy about the market and more cautious about how they spend their money.
4. What’s happening in your neighborhood vs. the headlines
What I’m seeing on a local level is that prices are generally stable, with about three months of inventory—meaning we’re still in a seller’s market overall. At least, that’s what the numbers showed for May. Keep in mind, this data comes from the 13 counties across the Denver metro area. When you look more closely at specific cities, like Broomfield and Boulder to the northwest, or Evergreen to the southwest, the markets there remain strong. But in luxury segments or areas like Aurora—and especially in attached homes—properties are staying on the market longer, and prices have started to edge down slightly.
5. Is now a smart time to act?
It all depends on your specific goals. If you’re currently renting, remember you’re paying down someone else’s mortgage, property taxes, and insurance. And while rents have dipped around 3%, when you look at the bottom line, are you really saving money? You also miss out on the tax benefits of homeownership—so purchasing a home or even co-living could be a smart solution.
If you’re thinking about selling and relocating, consider the savings you could lock in by selling now and buying now, especially if interest rates rise further. And if you’re in a strong financial position, renting out your current home while purchasing your next could build long-term wealth.
The truth is, we’re still feeling the aftershocks of COVID, and now the uncertainty of the political climate is kicking up even more dust. Trying to time your buying or selling perfectly based on what’s happening in the world? Well—if we could do that, we’d all be rich.