Denver Housing Market: Trends and Forecast 2026

Thinking about buying or selling a home in Denver? You're probably wondering what the market is actually doing right now. Well, here’s the short version: the Denver housing market is experiencing a slight cool-down, with home sales and prices ticking down compared to previous months, though still showing year-over-year growth in some areas. It's a mixed bag, but understanding the nuances is key to making smart decisions.

It feels different from the frenzied pace we’ve seen in recent years. Buyers have a little more breathing room, and sellers are starting to realize that the sky-high offers might not be as common. But don't get me wrong, Denver is still a desirable place to live, and that fundamental demand keeps things interesting. Let's dive into the details from the latest report to get a clearer picture.

Denver Housing Market Update and Trends

How Many Homes Are Actually Selling? (Home Sales)

One of the first things we look at is how many homes are changing hands. According to RE Colorado data for November 2025, closed listings were down 11% year over year. This means fewer homes were sold this November compared to last November.

Looking at the year-over-year numbers broken down:

• 2021: 5,268 closed listings
• 2022: 3,024 closed listings
• 2023: 2,777 closed listings
• 2024: 3,081 closed listings
• 2025: 2,749 closed listings

It's also important to see how things are trending month-to-month. In November 2025, closed listings dropped by a significant 21% from October 2025.

• October 2025: 3,465 closed listings
• November 2025: 2,749 closed listings

This dip month-over-month is pretty common as we move into the late fall and winter months, but the year-over-year decrease tells a slightly bigger story about the market's overall pace.

Are Home Prices Still Climbing? (Home Prices)

When sales slow down a bit, people often wonder if prices are also heading south. The good news for sellers is that, overall, prices are still holding strong.

The median closed price for homes in the Denver metro area was up 1% year over year in November 2025.

• 2021: $540K
• 2022: $563K
• 2023: $566K
• 2024: $580K
• 2025: $584K

However, if we look at the month-over-month trend, the median closed price saw a slight decrease of 1% from October 2025 to November 2025.

• October 2025: $590K
• November 2025: $584K

This is a subtle shift, and it’s crucial to remember that these are median prices. This means half the homes sold for more, and half sold for less. Some neighborhoods and types of homes might be seeing bigger price changes than others. Attached homes (like condos and townhouses) and detached homes (single-family houses) are also performing differently. Detached homes are currently sitting at a median closed price of $584K, while attached homes are at $400K.

What's Happening with Housing Supply? (Housing Supply)

Supply is a huge factor in housing markets. For a long time in Denver, we've struggled with not enough homes for sale. Let's see what the numbers say now, based on RE Colorado's report.

New Listings: The number of homes hitting the market, or new listings, was down 5% year over year in November 2025.

• 2021: 3,753 new listings
• 2022: 2,687 new listings
• 2023: 2,717 new listings
• 2024: 2,745 new listings
• 2025: 2,618 new listings

Month-over-month, the number of new listings saw a sharp decline of 41%, from 4,468 in October 2025 to 2,618 in November 2025. This drop is typical for this time of year as fewer people want to list their homes in the colder months.

Active Listings: On the flip side, we have active listings, which is the total number of homes for sale at any given time. Interestingly, active listings were up 14% year over year in November 2025.

• 2021: 2,423 active listings
• 2022: 6,026 active listings
• 2023: 6,393 active listings
• 2024: 8,972 active listings
• 2025: 10,199 active listings

This increase in available homes is a significant indicator. It means there are more choices for buyers. The fact that new listings are slightly down while active listings are up suggests that homes are staying on the market a bit longer before they sell, which ties into our next point.

Understanding the Market Dynamics: Seller's or Buyer's Market?

So, is it a good time to be a seller or a buyer? Based on the November 2025 data from RE Colorado, the market is leaning towards a more balanced state, with some buyer advantages emerging.

Here’s why:

• Increased Days on Market: Homes are taking longer to sell. The median days in MLS (how long a home is listed before it's sold) for detached homes was 35 days in November 2025. This is up from 29 days in 2024 and significantly higher than the 5 days in 2021. Attached homes are also taking longer, with a median of 38 days in November 2025, up from 38 days in 2024. The month-over-month increase of +3 days for detached homes and +3 days for attached homes also shows a slowing trend.
• More Homes Available: As we saw, active listings are up year over year. This gives buyers more options and reduces the intense competition that characterized earlier periods.
• Slight Price Moderation: While prices are still up year over year, the slight dip month-over-month suggests that the rapid price appreciation might be leveling off.

A Deeper Look: Activity by Price Range and Volume

Looking at sales by price range in November 2025, we see a good amount of activity across the board, but the busiest segments for closed listings were in the $400K-$499K and $500K-$599K ranges. New listings also mirrored this, with the highest numbers in those mid-range price points.

• Median Days in MLS by Price Range: Interestingly, the lower price ranges ($100K-$199K and $200K-$299K) are selling very quickly, with median days in MLS at just 61 and 39 days, respectively. As prices go up, the time on market generally increases, with homes over $1M taking longer, averaging 29 days for those over $2M.
• Gross Sales Volume: The total dollar amount of homes sold (gross sales volume) was down 9% year over year in November 2025.
  • 2021: $3,306,619,180
  • 2022: $1,981,190,016
  • 2023: $1,818,001,257
  • 2024: $2,115,685,565
  • 2025: $1,931,117,885

This drop in sales volume, combined with fewer closed listings but more active listings, reinforces the idea of a market that's slowing down from its peak.

Summary:

The Denver housing market in November 2025 is certainly in a different phase than it was a year or two ago. While the days of bidding wars on every listing might be less common, it doesn't mean the market is “bad.” It's just normalizing. More inventory and a slight cooling in price growth give buyers more leverage, while sellers still benefit from generally strong demand and solid home values.

Denver Housing Market Forecast: What's Next for Home Prices in 2026 & 2027?

Will home prices drop? Will the market crash? These are the million-dollar questions on everyone's mind when they look at the Denver housing market. Based on the current trajectory and economic indicators, I don't see a dramatic crash happening, but a continued cooling and stabilization is likely. Here's my take on a possible Denver housing market forecast for 2026 and 2027:

Denver Housing Market Forecast: 2026

Looking ahead to 2026, I anticipate the Denver housing market will continue to normalize. We've already seen signs of this in late 2025 with slightly fewer sales, longer times on the market, and more inventory.

• Home Prices: I predict modest price growth, perhaps in the 1-3% range annually, for the median home price in Denver. This is a far cry from the double-digit appreciation we saw in previous years. It's more of a healthy, sustainable increase.
  • Will prices drop significantly? A widespread “drop” across the entire market is unlikely unless there's a major economic shock (like a severe recession or a sudden spike in unemployment). However, we might see some specific neighborhoods or property types experience flat price growth or even slight declines if they were significantly overvalued.
  • Will it crash? A market “crash” typically involves a rapid and substantial decline in home values, often linked to widespread foreclosures and economic distress. Given Denver's consistent desirability, strong job market (though growth might moderate), and the fact that many homeowners have significant equity, a crash seems highly improbable in 2026.
• Inventory: I expect inventory to remain higher than the historical lows we saw a few years back. More homes being available gives buyers more choices and helps keep price increases in check. This increase in supply is a healthy sign for market balance.
• Sales Volume: We'll likely see sales volume stabilize or potentially see a slight increase from late 2025 levels, but probably not reaching the peak volumes of prior years. Mortage rates will continue to play a huge role here. If rates remain steady or slightly decrease, it could encourage more buyers.
• Buyer vs. Seller: The market will likely remain in a balanced territory, possibly leaning slightly towards buyers in some segments. Buyers will have more negotiating power, and we'll see fewer waived contingencies.

Denver Housing Market Forecast: 2027

By 2027, I expect the Denver market to have fully settled into a more predictable rhythm. Barring any unforeseen major economic shifts, this picture should continue to solidify.

• Home Prices: I anticipate continued modest appreciation, likely staying in the 1-4% annual range. The market will be driven more by local economic growth, job creation, and population influx rather than speculative buying. We might see price growth accelerate slightly if interest rates become more favorable or if new job growth significantly picks up.
• Inventory: Supply should continue to be adequate, meaning buyers won't face the severe shortages of the past. Developers may also begin to bring more new construction online, especially if demand holds steady.
• Sales Volume: Sales volume should see steady, sustainable activity. It won't be the frantic pace of the past, but consistent transactions driven by genuine housing needs (relocation, life changes, etc.).
• Market Dynamics: The market will likely be characterized by stability. Home price growth will be more closely tied to income growth and inflation. Negotiations will be standard practice, and buyers will continue to have a reasonable selection of homes.

Factors to Watch in the Coming Years

Several factors will influence this forecast:

1. Interest Rates: This is arguably the biggest driver. If interest rates climb significantly, it will put downward pressure on prices and slow sales. Conversely, if they moderate, it could boost demand.
2. Economic Conditions: The overall health of the U.S. and local Denver economies is critical. Job growth, wage increases, and consumer confidence all play a role.
3. Population Growth: Denver remains a desirable place to live. Continued, albeit perhaps slower, in-migration will support housing demand.
4. Affordability: Denver has always been on the pricier side. If affordability continues to be a major concern, it could limit price growth and push some buyers to surrounding areas.
5. New Construction: The pace and volume of new homes being built will significantly impact inventory levels.

In summary, while the Denver housing market is unlikely to “crash,” the days of rapid, double-digit appreciation seem to be behind us for the foreseeable future. Expect a more balanced, stable market where growth is steady and driven by fundamentals. For buyers, this means more opportunity and less pressure. For sellers, it means being strategic and realistic about pricing and expectations.