Front Range Real Estate Market Update, July 24, 2025

It would take 4.1 months to sell all the homes currently for sale if no other homes came on the market.

We haven’t seen that many “months of inventory” since August 2012! Back then, the average home sold for $283,405 and took about 27 days to find a buyer. Mortgage rates were surprisingly low—the average 30-year fixed rate was 3.74% for loans closed between August 27-31.

Fast forward to today: the average home sells for approximately $742,000 and takes about 36 days for a seller to accept an offer. Here’s the kicker—new homes keep hitting the market daily. Just this past week, more than 1,720 homes went up for sale. Current 30-year mortgage rates average 6.81%.

The Affordability Reality

The numbers tell a stark story. That $283,405 home in 2012 with 5% down and a 3.74% rate meant monthly payments around $1,649. Today’s average-priced home? Your monthly payment jumps to over $5,200.

Income growth simply hasn’t kept pace. The median U.S. household income was $65,740 in 2012. Today, Motley Fool estimates Metro Denver’s median household income at $103,055.

The math is sobering: monthly payments have increased by 200% while incomes have grown only 50%.

What This Shift Means

With 4.1 months of inventory, market dynamics have fundamentally changed. Buyers now have more negotiating power than they’ve enjoyed in years—more time to decide and more homes to choose from. Sellers face diminished leverage and should prepare for tougher negotiations on both price and terms.

Inventory typically peaks in May or June, so we may be approaching a new equilibrium as fall approaches. However, while inventory may decline seasonally, demand traditionally drops as summer ends and school begins.

What Should You Do?

For Buyers: This is your moment—but don’t wait forever. You finally have time to be selective and negotiate on price, repairs, or closing costs. Still, affordability remains your biggest hurdle. Get pre-approved at today’s rates and consider homes below your maximum budget to preserve negotiating room.

For Sellers: Strategic pricing is everything now. The days of overpricing and receiving multiple offers are largely over. Study your competition—the homes your ideal buyer is also considering—and price competitively from day one. Be ready to negotiate and consider concessions like covering closing costs or buying down the buyer’s rate. Every day your home sits on the market signals to buyers that you may be overpriced.

For Everyone: This shift doesn’t signal a market crash—we’re moving toward balance, not collapse. Unlike 2012’s foreclosure-driven crisis, today’s inventory increase reflects normalized supply meeting reduced demand caused by affordability constraints.

Timing Considerations: If you’re both buying and selling, this environment could work in your favor. You’ll have more options as a buyer while still facing reasonable demand as a seller—if you price correctly.