Market Update, May 22, 2025

Interest rates are over 7% again. Inventory continues to climb. Showings are down. Sellers have lowered the asking prices of 50% of homes for sale in Denver County and 48% of homes in Jefferson and Douglas Counties. Nationally, home sales dropped in April, slowing to a rate not seen since 2009. Home values have fallen in about half the country. In our area, prices for all homes are down year-over-year, with a more than 4.6% decline in prices for attached homes.

We’ll come right out and say it. The market has shifted.

In any market, homebuyers make trade-offs. Whether it’s compromising on price, location, condition, or features, most buyers understand that no home is perfect. However, buyers are becoming more discerning in the current market environment—where affordability challenges, higher interest rates, and more homes to choose from are shifting the dynamics. They’re no longer as willing to overlook flaws or stretch their budgets. That means sellers must be sharper than ever when positioning their homes for a successful sale.

Today’s buyers want value. If a home isn’t in a desirable location, is outdated, lacks curb appeal, or is priced above similar properties in the area, it’s likely to be ignored. Sellers who try to push the envelope on pricing without addressing the condition of their home, taking into account its less-than-desirable location, or updating key features risk being left behind. Unlike in a hot seller’s market, where demand could compensate for deficiencies, buyers now have choices—and they’re taking their time.

This new reality creates a widening gap between homes that sell and those that linger. Well-priced, move-in-ready homes in sought-after areas still attract strong interest and can sell quickly. But properties that fall short—especially those that are overpriced, poorly maintained, or in less desirable locations—are sitting longer, drawing price reductions, and sometimes not selling at all. Simply listing a home and hoping for top dollar without preparation or strategy is no longer a winning formula.

Sellers should control what they can. That includes the price and condition of your home.

If you want to compete, your home must stand out for the right reasons. That means pricing realistically based on current comps, addressing any deferred maintenance or cosmetic issues, and making thoughtful updates where possible. Buyers are still ready to purchase—but only if the home meets their standards and feels like a smart investment. Preparing properly can make all the difference between a quick sale and prolonged disappointment.