December 2025 Your Castle Real Estate Newsletter

As the holiday season settles in with colder days and festive evenings, the Denver Metro housing market follows a familiar, time-tested pattern.

Inventory & Listings:

Inventory trends indicate the initial effects of the seasonal slowdown. Active listings declined 15.92% month over month to 10,506 but remain 12.85% higher than the same period last year. Historically, November inventory has averaged 13,416 from 1985 to 2024, with a peak of 27,530 in 2006 and a low of 2,248 in 2021. Current levels position the market near the long-term midpoint, signaling continued normalization rather than compression. New listings fell 41.39% month over month, one of the sharpest seasonal declines of the year, consistent with typical seller behavior during the holiday period as many postpone listings until early in the new year when buyer activity typically increases.

Days on Market:

Median time on market lengthened as well, with days in the MLS rising to 36, an increase of 9% from October and 26% year over year. Detached properties averaged 56 days on market and attached properties averaged 67, marking a clear shift away from the accelerated conditions of prior years. These extended timelines signal a move toward a more sustainable baseline rather than market distress. Throughout 2025, the market effectively recalibrated from an environment defined by bidding wars, waived contingencies, and rapid appreciation to one characterized by negotiation, more predictable timelines, and measured price movement. A listing remaining active for around a month now aligns with balanced market conditions, not an underlying problem with the property. Buyer negotiations around concessions similarly represent standard dynamics in a normally functioning market, rather than opportunistic behavior. Looking ahead to 2026, participants who adjust expectations to this more balanced environment are likely to be better positioned, while those waiting for outsized price swings—either sharp gains or steep declines—may remain on the sidelines longer than anticipated.

Market Conditions and Sales Signal continued Stability:

Sales activity softened in line with seasonal patterns, with pending sales down 11.05% month over month and closed sales down 23.37%, typical of holiday slowdowns as travel and year-end priorities take precedence. Pending sales still finished 2.45% above last year, indicating steady underlying demand. Pricing remains stable: the median close price slipped just 0.85% from October to 585,000 and is 0.86% higher year over year, while both detached and attached homes are closing slightly above 98% of list price. This moderation has tempered the rapid gains of the pandemic era. From March 2020 to November 2025, the cumulative median price increase of 31.5% translates to roughly 6.3% annual growth, a pace more consistent with Denver’s long-term trend and indicative of a market shifting from volatility to sustainable, incremental change.

Info for Buyers:

Current conditions are broadly encouraging. The 30-year fixed mortgage rate has eased to around 6.23%, a meaningful improvement from 6.93% at this time last year, helping boost affordability. Together with longer days on market, stable pricing, and less competition, this period stands out as one of the most advantageous times of the year to buy in the Denver Metro area. Buyers who stay active while others step back for the holidays often secure opportunities that become far more competitive once spring activity returns.

Info for Sellers:

The holiday season is typically the toughest stretch of the year for sellers in the Denver Metro market. Many pull their listings in November and December, planning to relaunch in January or February when buyer activity picks back up. Sellers who stay on now may see longer days on market and fewer showings, but they also face less competition and tend to meet more serious, motivated buyers. Success in this environment comes from recognizing the realities of the season: focusing on strong preparation, strategic pricing, and flexibility on terms. With prices holding steady and core market fundamentals still sound, well-presented and well-priced homes can still achieve strong results.

Reach out to me with questions!