Denver Real Estate Market Update
February 2026
Bottom line:
Even though buyers are starting to come back, prices haven’t bounced back yet because inventory is still the main driver—and until supply loosens up meaningfully, the market stays under pressure.
Metro Denver Real Estate Statistics Snapshot - All Property Types
| Latest Month January 2026 | Previous Month December 2025 | Year Over Year January 2025 | |
|---|---|---|---|
| Median Sold Price | $539,900 | $545,000 | $552,000 |
| # of Active Listings | 16,437 | 16,348 | 15,604 |
| # Under Contract | 5,090 | 3,680 | 4,825 |
| # Sold Homes | 3,415 | 5,352 | 3,901 |
| Months Supply of Homes | 2.8 | 2.8 | 2.7 |
| Median Days on Market | 58 | 48 | 48 |
Metro Denver Real Estate Prices
Median Closed Price For The Entire Denver metro MLS - All Property Subtypes
The median closed price declined 1.1% from December and is down 2.4% year over year. Prices are 7.1% below the June peak, marking the lowest median sales price since January 2024. This reflects normal seasonal softness combined with elevated inventory, rather than a breakdown in demand.
Metro Denver Real Estate Supply
New Listings - Metro Denver, All property Subtypes
New listings rose sharply in January, reaching the highest January total since records began in 2009. Many of these homes were likely pulled from the market during the winter months and relisted after the new year, signaling that sellers are returning earlier and in greater numbers than in recent years.
Homes For Sale - Metro Denver, All Property Subtypes
Active inventory remains elevated, though January is still the seasonal low point for the year. Inventory levels are higher than what is typical for January and are closer to levels that, in past years, were more common near the annual peak. This provides buyers with increased choice while creating more competition among sellers.
Metro Denver Home Buyer Demand
Pending Home Sales - Metro Denver, All Property Subtypes
Pending listings increased to 5,225 homes under contract, making this the most active January since the interest rate spike. Buyer activity is showing earlier than normal, suggesting improved affordability and growing confidence among buyers heading into 2026.
Denver real estate Forecast and market Update
Mortgage Rate Update
According to Mortgage News Daily, the average 30-year fixed mortgage rate is currently around 6.2%, placing rates firmly in the low-6% range. This is slightly lower than where rates were during the last update and near the lowest levels seen over the past three years. Over the past month, rate movement has been minimal, with daily fluctuations remaining within a narrow band rather than showing a clear upward or downward trend.
The relative stability in rates reflects a bond market that has largely priced in expected Federal Reserve policy, along with easing inflation pressures and mixed economic data. While rates briefly dipped closer to 6% earlier in January, they have since leveled off, suggesting the market is searching for its next directional catalyst.
Looking ahead, most analysts expect mortgage rates to remain fairly stable through the spring, generally hovering in the low-to-mid-6% range unless there is a significant shift in inflation data or economic growth. Into the summer and the second half of 2026, forecasts point to gradual improvement, with rates potentially drifting lower as the year progresses. While short-term dips below 6% are possible, most experts do not expect rates to drop much below 6% without a major economic slowdown.
Market Summary and Forecast
As we move into 2026, the Denver metro housing market is transitioning into a more balanced and more active phase, but with meaningful checks on price growth. Elevated inventory and an early return of sellers are setting the tone for the year and will play a major role in how the market unfolds.
Buyer activity is already showing up earlier than normal for January, helped by lower prices
and mortgage rates holding in the low-6% range. At the same time, sellers have come back
to the market in greater numbers, increasing competition among listings. This higher level of
supply is likely to be the primary factor keeping price growth in check, even as demand
improves.
Looking Ahead – Nathan’s Forecast
I expect 2026 to be an active market, but not an overheated one. Unless mortgage rates fall into the mid- to low-5% range, elevated inventory should prevent prices from accelerating sharply. Instead, the market is likely to follow a more typical seasonal pattern, with prices rising modestly from their winter low into late spring or early summer.
My expectation is that prices increase approximately 9% to 11% from the winter valley to the seasonal peak, supported by steady demand but tempered by ongoing supply. This would represent a healthier and more sustainable market than what we saw during the rapid appreciation years.
What This Means for Buyers and Sellers
Overall, 2026 is shaping up to be a year where strategy matters. Sellers will need to price accurately and prepare their homes carefully to stand out, while buyers should benefit from better selection, more negotiating power, and fewer pressure-driven decisions than in past cycles.
