Denver, CO Housing Market Report

The Denver-Aurora-Lakewood housing market is currently experiencing a significant shift toward buyer-friendly conditions as of December 2025. With active inventory rising by more than 10% year-over-year to 10,044 units and the median days on market stretching to 83 days, the frantic pace of previous years has cooled. The sale-to-list ratio of 0.99 indicates that while sellers are still receiving close to their asking prices, they no longer hold the absolute leverage that defined the post-pandemic era. This environment allows buyers more time for due diligence and increased room for negotiation.

Price trends over the last six months suggest a period of stabilization following a year-over-year decline of 4.2%. After hitting a low point in September 2025 at $523,041, the median home value has seen modest, incremental gains for three consecutive months, ending the year at $524,675. This plateauing effect suggests that the market is finding a new floor. The downward pressure on prices earlier in the year was likely driven by increased inventory levels and a correction from previous record highs, while the recent stability indicates that demand remains resilient enough to support current valuations.

Looking ahead, the Denver market appears to be entering a phase of balanced growth. For buyers, the increase in inventory and longer time on market provide a rare window of opportunity to enter the market with less competition. For sellers, the key to success in 2026 will be realistic pricing and patience, as homes are taking roughly two weeks longer to sell than they did a year ago. While the rental market has also seen a slight softening with a 1.58% year-over-year decrease in median rent to $1,833, the overall housing demand in the metro area remains fundamentally strong due to the region's diverse economy and lifestyle appeal.