The Denver, CO metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has risen to $598,900, marking a 5.0% increase year-over-year, indicating a continued appreciation in home values despite other market fluctuations.

Conversely, the median Price Per Square Foot has decreased by 1.4% year-over-year to $273.23, suggesting that while overall home prices are up, the value per square foot has slightly declined. This could reflect a shift in buyer preferences towards larger homes or a change in the types of properties being sold.

In terms of sales activity, the number of Homes Sold has decreased by 9.4% year-over-year, totaling 2,803 units. Pending Sales have also seen a slight decline of 2.2%, with 3,772 transactions in the pipeline. This reduction in sales activity may be attributed to the increased inventory, which has surged by 39.9% year-over-year to 7,891 homes, providing buyers with more options and potentially leading to longer decision-making times.

The market's inventory growth has contributed to a significant increase in the Months of Supply, which has doubled to 2.8 months. This indicates a shift towards a more balanced market, moving away from the seller's market conditions that have prevailed in recent years. The Median Days on Market have also increased by 14.0% to 45 days, further highlighting the cooling pace of sales.

Despite these shifts, the Median List Price has seen a modest increase of 1.7% year-over-year, reaching $600,000. The Median List Price per square foot has also risen by 1.1% to $291.51, suggesting that sellers remain optimistic about pricing, even as the market adjusts.

The average sale to list ratio has slightly decreased by 0.3% to 99.0%, indicating that homes are selling closer to their asking prices, but with less frequency than in previous years. The percentage of Homes Sold above list price has dropped by 2.9% to 25.3%, reflecting a more competitive market environment where buyers have more negotiating power.

Price Drops have increased by 4.3% to 34.5%, suggesting that sellers are adjusting their expectations in response to the increased inventory and slower sales pace. Additionally, the percentage of homes going off the market within two weeks has decreased by 6.9% to 41.5%, further emphasizing the extended time properties are spending on the market.

Overall, the Denver housing market in February 2025 is characterized by rising home prices amidst a backdrop of increased inventory and slower sales activity. While sellers are adjusting to these new conditions, buyers are presented with more choices and potentially more favorable negotiating conditions.