Littleton Real Estate Market Update: Price & Inventory Trends 2025

by Source Home Group

The Littleton, CO real estate market continues to evolve in 2025, with notable shifts in home prices and inventory levels shaping both buyer and seller opportunities. Understanding these trends can help you navigate the market whether you’re looking for homes for sale in Littleton or evaluating the best time to sell.

Current Price Trends: Stabilization Amid Moderate Growth

After the rapid home price increases experienced in recent years, 2025 is seeing a stabilization in Littleton’s home values. The median price for homes in Littleton today hovers around $625,000 to $650,000, with year-over-year appreciation slowing to roughly 2-4%. This contrasts with double-digit annual gains witnessed during 2021 and 2022. Luxury homes, especially those priced over $1 million, tend to stay longer on the market, while starter homes and townhomes under $500,000 remain highly competitive.

Zillow reports the average home value in Littleton at approximately $630,000, reflecting a mild decline of about 2.5% over the past year, which is typical for seasonal corrections in a maturing market. Meanwhile, Redfin indicates a median sale price around $600,000 with homes typically selling within 41 days — slightly longer than quicker sales in previous years.

Inventory Levels: More Choices for Buyers

One major positive for buyers is the rise in available inventory. After several years of tight supply, Littleton now enjoys about 2.5 to 3 months of housing supply. Active listings have grown by nearly 35-40% compared to 2023. This increase reflects both more homeowners willing to list and ongoing new construction particularly in southwestern parts of Littleton.

While the market technically remains a seller’s market due to inventory still being under 4-6 months (a balanced market), the wider supply gives buyers more options and reduces the fierce bidding wars that dominated the last few years. Sellers who strategically price their homes and keep them move-in ready can still see success, especially in sought-after neighborhoods such as Ken Caryl and Downtown Littleton.

Neighborhood Highlights and Market Pockets

Though the citywide trends show market moderation, select neighborhoods in Littleton reflect varying dynamics:

Historic Downtown Littleton has experienced a 20.8% year-over-year increase in median sale price, now about $725,000, fueled by its charm and walkability.
Ken Caryl (80127) saw nearly a 10% increase in home values, popular for its outdoor recreation amenities.
Other areas like Ketring Park and neighborhoods in the 80123 ZIP code posted mid-single-digit growth with strong buyer interest.

These pockets highlight an evolving market where location, community features, and property condition remain key drivers.

What This Means for Buyers and Sellers

Buyers:
With stabilizing prices and an uptick in inventory, buyers have a less pressured environment to find the right home. Older buyers seeking starter and mid-range homes enjoy more negotiating leverage, while new construction in areas like Sterling Ranch offers modern amenities and energy-efficient homes.

Sellers:
Sellers should price realistically and keep their properties updated to attract discerning buyers. Luxury home sellers might experience longer listing times, making proper staging and marketing crucial.