The residential real estate market in the Denver–Lakewood–Aurora area is showing signs of transition. Inventory is rising, price growth is slowing, and the advantage is starting to shift toward buyers. Here's a closer look at what's happening and what it means for homeowners and prospective buyers.
According to the Federal Housing Finance Agency (FHFA), Colorado home prices rose about 1.93% year-over-year as of Q1 2025. That’s below the national increase of 4.0%. While prices remain high, the rapid appreciation of the past few years has tapered off.
The chart above compares Colorado’s price index to the national average over the past five quarters. As shown, Colorado’s market is stabilizing after several years of aggressive growth.
Active listings in the Denver metro area are up approximately 42% from this time last year. That’s a significant shift, and it’s giving buyers more options and more negotiating power. Nearly 38% of listings in June 2025 had price reductions.
This inventory increase is a key sign that the market is rebalancing. Sellers are adjusting their expectations, and homes are spending more time on the market.
With mortgage rates still hovering around 6.75%, many homeowners are reluctant to sell — especially if they’re holding loans at 3% or below. This is known as the lock-in effect. It’s slowing down new listings even as buyer demand cools.
For new buyers, higher rates reduce affordability, which puts additional pressure on pricing and demand.
Median home prices in metro Denver are still around $585,000. While prices remain strong, buyers now have more room to negotiate, and bidding wars are less common than they were in 2021–2022. Condo prices in the city are softening more than single-family homes in the suburbs.
Fannie Mae and other national forecasters expect home prices to rise between 2–3% through the end of 2025. Denver is likely to track slightly below that range due to high inventory and affordability concerns.
This does not point to a market crash. Rather, it reflects a more balanced environment where pricing is driven by realistic buyer demand and careful seller positioning.
Keep in mind that this is a broad market overview. Different neighborhoods, property types, and price ranges can perform very differently. If you’re planning to buy or sell, it’s important to base decisions on local, property-specific data.
As always, Alpha Appraisal Associates LLC is available to assist with property valuations, market insights, and real estate-related questions throughout the Denver metro area.
As an executor, overseeing the settlement of an estate can be a complex and daunting task. Among the many responsibilities you face, obtaining an estate appraisal is a critical step in ensuring the fair distribution of assets and fulfilling tax obligations. In this guide, we'll delve into the ins and outs of estate appraisals, including the importance of establishing a new taxable basis, commonly known as a date of death appraisal.
Understanding the Purpose and Importance of Estate Appraisals
Estate appraisals serve a dual purpose in the settlement process. Firstly, they determine the fair market value of the deceased's property for asset distribution among heirs. Secondly, they establish a new taxable basis for inherited property, which is crucial for accurate tax reporting to the IRS. These may or may not be the same value and may or may not have the same effective date. Make sure to communicate with the appraiser to determine the appropriate value type and effective date to meet your appraisal requirements and needs.
According to the IRS, the fair market value of inherited property is typically based on its value as of the date of the decedent's death. This valuation, known as a date of death appraisal, is used to establish the property's basis for determining capital gains taxes when it is eventually sold by the heirs.
A comprehensive estate appraisal(s) helps prevent disputes among beneficiaries and ensures compliance with tax laws, ultimately facilitating a smoother settlement process.
Steps Involved in Obtaining an Estate Appraisal
Obtaining an estate appraisal involves several key steps:
Understanding Appraisal Reports and Utilizing Appraisal Results
Upon receiving the estate appraisal report, carefully review its contents and seek clarification from the appraiser on any discrepancies or questions. The appraisal report will serve as a crucial document for establishing the new taxable basis of inherited property and guiding asset distribution among beneficiaries.
In conclusion, estate appraisals play a vital role in the settlement process, serving both asset distribution and tax reporting purposes. By understanding the importance of estate appraisals and following these guidelines, executors can navigate the appraisal process with confidence and ensure a fair and accurate valuation of estate assets.
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· Disclaimer of Liability: The information provided in this blog post is for general informational purposes only and should not be construed as legal, financial, or tax advice. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information contained herein.
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