housing report: colorado housing shifts to buyers’ market in July
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By Margaret Jackson | Published on August 19, 2025
Colorado’s housing market has tilted firmly toward buyers as home sales slow and inventory continues to rise.
With more homes on the market and fewer buyers, sellers are offering concessions, including cash for closing costs or mortgage rate buydowns, to close deals.
According to the latest Market Trends Housing Report from the Colorado Association of Realtors, median home prices dipped slightly across the state in July.
In the Denver metro area, the price for a single-family home fell 1.5% from June, while statewide, prices were down just over 1%.
“It’s a continuation of the trends we’ve seen this year,” said Cooper Thayer of Denver-area real estate brokerage The Thayer Group. “It’s nothing out of the ordinary. July marked the beginning of the second half. We’ll see inventory decline, and days on market will increase slightly.”
Seller concessions, once a rarity in the red-hot markets of recent years, have become commonplace.
In July, more than 61% of Denver metro home sales included a seller concession, with the average amount topping $10,800.
Buyers often use the money to:
Buy down the interest rate for the life of the loan, saving hundreds of dollars monthly and tens of thousands over the mortgage term.
Cover closing costs, which can reduce the amount of cash a buyer needs at closing.
Fund repairs or upgrades discovered during the inspection period, keeping deals from falling apart.
For sellers, offering concessions can be a more effective strategy than a simple price drop. It allows them to maintain their list price while helping a buyer with the biggest obstacle: affordability.
“We’re seeing a lot of negotiating power in the hands of buyers,” Thayer said. “They feel comfortable being able to walk away.”
Well-maintained, accurately priced homes in desirable locations continue to sell quickly. However, properties that are overpriced, need renovations or are in less convenient locations are sitting on the market longer, often requiring multiple price cuts or significant incentives to attract offers.
In the condo and townhome market, the pressure is even more pronounced. Median prices are down 6.5% year-over-year in the Denver area, a decline fueled partially by rising homeowner (HOA) association fees. Higher HOA costs reduced a buyer’s purchasing power, making sellers’ pricing and concessions even more critical for a successful sale.
“For every $100 in HOA dues, it takes down your purchase price by $15,000,” Thayer said. “HOAs in downtown Denver and more dense areas are up to 60 or 70 cents per square foot per month, sometimes a dollar. These are prohibitive for entry-level products.”
While mortgage interest rates remain elevated, the combination of increased inventory, slower sales and the widespread use of seller concessions has created a prime opportunity for buyers.
“We are in a buyers’ market,” said Kelly Moye, a realtor with Compass in the Boulder/Broomfield area. “We spent the first part of the year saying it looks like we might go to a buyers’ market, but there’s no question anymore that that’s where we are.”
Moye said that now could be a great time for people who are interested in investment properties to take advantage of the market.
“We have not experienced any appreciation this year, and we’re starting to see depreciation as we get into fall,” Moye said. “This may be a perfect time to buy an investment property.”
Investors should look for properties that have been on the market for 30 to 60 days and have dropped in price.
“You’re not looking at new listings. You’re looking at the ones that have been on the market since May or June, and there are plenty of them,” Moye said.
“If you were really in the market to get into real estate, you don’t want to miss chances like this. You have sellers who are wearying and need to move, If you’re a buyer, be savvy and take advantage.”