Last updated: Jan 2026

The Denver metro real estate market continues to evolve as inventory, pricing, and buyer demand rebalance across the Front Range. This in‑depth report breaks down current conditions, historical trends, and what they mean for buyers, sellers, and investors across Denver and its surrounding communities.

Denver Metro Market Overview

“Denver’s real estate market has shifted out of the frenzy of recent years and into a more strategic phase. Buyers have more options and leverage, while sellers who price and prepare correctly are still achieving strong results. Success today depends on understanding your specific neighborhood and market segment.”

— ZBell Real Estate Team

Denver Metro Market at a Glance

• Market Type: Balanced

• Median Home Price: ~$585,000

• Active Inventory: ~14,500 homes across the metro

• Months of Inventory: ~3.8 months

• Average Days on Market: ~34 days

• Overall Trend: Prices are stabilizing with increased buyer choice

Compared to the peak seller market of recent years, buyers now have more time to evaluate options, while sellers must price and prepare strategically to compete.

Market Health Indicators

Key indicators point to a more normalized market environment:

• Median Sale Price: ~$585,000 (roughly flat year-over-year)

• Price per Square Foot: ~$340

• List-to-Sale Price Ratio: ~98.2%

• Months of Inventory: ~3.8 months (balanced conditions)

• Absorption Rate: ~26% monthly

These metrics suggest neither buyers nor sellers hold a clear advantage across the entire metro — outcomes are increasingly dependent on neighborhood, condition, and pricing strategy.

Historical Market Trends

Over the past 12–36 months, the Denver metro market has transitioned away from extreme volatility:

• Home Prices: Up approximately 1–2% year-over-year

• Inventory: Increased roughly 25–30% from prior-year lows

• Days on Market: Up from the low 20s to the mid-30s

• Closed Sales: Down approximately 8–10% year-over-year

Rather than a sharp correction, the market has experienced a gradual rebalancing, reinforcing Denver’s long-term housing stability.

Sales Activity & Market Velocity

• Closed Sales: ~4,200 homes per month across the metro

• Pending Sales: ~4,400 homes under contract

• New Listings: ~5,000 homes added monthly

Buyer activity remains steady but deliberate. Homes that are well-priced and move-in ready typically sell within the first 30–45 days, while overpriced listings often require price reductions.

Inventory & Supply Breakdown

• Active Listings: ~14,500 (as of January 5, 2026)

• New Listings (Monthly): ~5,000 (December 2025 average)

• Months of Inventory by Segment:

  • Entry-level: ~2.5 months

  • Mid-range: ~3.5 months

  • Luxury: 5.5+ months

Inventory growth has been uneven, with higher-priced homes experiencing the largest supply increases.

Price Segmentation Analysis

Market conditions vary significantly by price point:

• Under $500K:

  • Avg Days on Market: ~28 days

  • Competition remains strong in desirable areas

• $500K–$750K:

  • Avg Days on Market: ~34 days

  • Most balanced segment of the market

• $750K–$1M:

  • Avg Days on Market: ~45 days

  • Increased buyer negotiation

• $1M+:

  • Avg Days on Market: 60+ days

  • Pricing and presentation are critical

Understanding these differences is essential for setting realistic expectations.

Property Type Performance

• Single-Family Homes:

  • Median Price: ~$625,000

  • Avg Days on Market: ~32 days

• Townhomes:

  • Median Price: ~$465,000

  • Avg Days on Market: ~35 days

• Condos:

  • Median Price: ~$395,000

  • Avg Days on Market: ~42 days

Condos and attached housing remain more price-sensitive due to HOA costs and financing considerations.

Denver Metro Cities & Nearby Area Market Snapshot

Below is a high-level snapshot of pricing and pace across major Denver metro cities:

• Denver: ~$600K median | ~32 Days on Market | Balanced

• Arvada: ~$580K median | ~38 Days on Market | Area-dependent

• Aurora: ~$510K median | ~35 Days on Market | Buyer-friendly

• Brighton: ~$520K median | ~40 Days on Market | Moderate pace

• Castle Pines: ~$750K median | ~35 Days on Market | Upscale community

• Castle Rock: ~$690K median | ~34 Days on Market | Growing market

• Centennial: ~$650K median | ~30 Days on Market | Tighter inventory

• Commerce City: ~$500K median | ~38 Days on Market | Value-oriented

• Englewood: ~$575K median | ~34 Days on Market | Competitive pockets

• Greenwood Village: ~$825K median | ~42 Days on Market | Premium market

• Highlands Ranch: ~$700K median | ~31 Days on Market | Limited inventory

• Lakewood: ~$560K median | ~45 Days on Market | Slower pace

• Littleton: ~$625K median | ~36 Days on Market | Steady demand

• Lone Tree: ~$680K median | ~33 Days on Market | Strong demand

• Northglenn: ~$545K median | ~35 Days on Market | Balanced

• Parker: ~$670K median | ~32 Days on Market | Family-focused

• Thornton: ~$535K median | ~32 Days on Market | Moderate activity

• Westminster: ~$550K median | ~33 Days on Market | Balanced

• Wheat Ridge: ~$565K median | ~36 Days on Market | Balanced market

City-level performance can vary widely by neighborhood and housing type, reinforcing the importance of hyper-local analysis.

Rental Market Overview

• Median Rent (1-bed): ~$1,750/month

• Median Rent (2-bed): ~$2,200/month

• Vacancy Rate: ~5.5%

• Annual Rent Growth: ~2–3%

Rental demand remains stable, supported by population growth and affordability challenges in homeownership.

Economic & Demographic Drivers

• Population growth continues at a moderated pace

• Job market remains diverse and resilient

• Interest rate environment has shifted buyer behavior

Economic fundamentals continue to support long‑term housing demand across the metro.

Buyer, Seller & Investor Insights

Buyers:

• More negotiating power than recent years

• Greater inventory selection

Sellers:

• Strategic pricing is essential

• Preparation and marketing matter

Investors:

• Long‑term appreciation remains attractive

• Location‑specific rental analysis is key

6–12 Month Market Outlook

• Price Outlook: Flat to +3% depending on location

• Inventory: Expected to remain elevated

• Demand Drivers: Interest rates, job growth, and migration patterns

The market favors informed, strategic decisions rather than urgency-driven buying or selling.

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Data Sources & Methodology

This report reflects aggregated insights from:

• Denver MLS data (REcolorado) through December 31, 2025

• December 2025 DMAR (Denver Metro Association of REALTORS®) Monthly Market Trends Report

• Year-over-year comparisons reference December 2024 vs December 2025

• Historical trend analysis covers January 2023–December 2025

Note: Real estate markets are seasonal. January data typically shows 20-30% lower transaction volume compared to peak spring/summer months. Statistics will be updated monthly as new MLS data becomes available.