Denver’s housing market is seeing a rise in unsold homes, tipping the balance in favor of buyers. Although buyers now have more negotiating power, high prices and borrowing costs continue to limit affordability. Home listings continue to climb while sales activity slows.
Highlights
- Denver’s housing market transforms into a buyer’s market with an increase in listings.
- Affordability continues to be an issue for buyers looking to purchase a house.
- Unsold properties continue to increase in Denver.
Colorado Association of Realtors on Denver’s Housing Market
According to the Colorado Association of Realtors, Denver’s housing market is transforming into a buyer’s market. With the number of unsold properties on the rise, buyers have more options than in previous years. Buyers now face a wider selection of homes across Denver.
Prices are going slightly down, with condos and townhomes facing larger price declines. With sales slowing while inventory goes up, buyers have more negotiating power. Meanwhile, sellers need to adjust prices, make their homes attractive, and offer better incentives when finalizing a deal.
Despite favorable conditions, many buyers are holding off on making a purchase. New listings have increased by 11 percent from last year, but buyers are not ready to make the purchase.
The Affordability Barrier
While the Denver housing market may have become increasingly favorable for buyers, there are some hurdles. As listings increase, the high interest rates make borrowing expensive. Most homes are financed with mortgages, but high interest rates are keeping many buyers out of the market.
Even with slight price declines, Denver homes remain expensive compared with historical averages. When factoring in HOA fees, closing costs, and other expenses, buying a home in Denver remains a challenge for many households. Housing in and around Denver is comparatively expensive, with the median sale price of a house sold in August 2025 being $575,000.
Buyers are watching for further price declines and potential drops in interest rates. They also hold hope that interest rates will fall in the upcoming days. These reasons together have created an affordability barrier that is not easy to cross.
While the Denver housing market seems favorable from afar, it is still expensive for many households. The median sale price has dropped just $500 from last year, showing the market remains out of reach for many buyers.
