2026 Denver Housing Market Forecast: What Buyers and Sellers Need to Know

Many people were hoping for a major shift in the housing market in 2025. While mortgage rates made modest moves that slightly improved affordability, it wasn’t enough to spark significant market momentum.

At the same time, home prices across the Denver Metro real estate market  remained relatively stable. In 2025, closed prices for attached homes, including condos and townhomes, declined by 2.85%. Single-family home prices saw a modest increase of just 0.85%. Overall, we experienced a market that cooled without correcting.

Mortgage Rates in 2026: Stability, Not a Drop

By most economist forecasts, mortgage rates in 2026 are expected to hover near current levels, with occasional small dips throughout the year. In fact, rates recently hit a two-month low, with the average 30-year fixed mortgage landing at 6.19%. That said, buyers and sellers shouldn’t expect dramatic rate relief anytime soon.

The takeaway? Rates are no longer the main driver of the market. Strategy is.

Inventory Is Rising Across the Denver Housing Market

We are already seeing signs of increased housing inventory in Denver. Many sellers pulled their homes off the market toward the end of 2025 due to the slower holiday season. Those homes are expected to re-enter the market in Q1, giving buyers more options heading into spring.

Additionally, as we settle into this “new normal,” more homeowners who once felt locked in by ultra-low 2021 interest rates are choosing to move anyway, driven by lifestyle changes such as growing families, retirement plans, or job relocations.

A Busier Spring Is Ahead

Early indicators point to increased buyer activity. While mortgage applications dipped over the holidays, they’re up 10% compared to the same time last year. That’s a strong signal that buyers are running the numbers and preparing for a 2026 home purchase in Denver.

Advice for Buyers in 2026

This can be a fantastic year to buy if you have a plan.

One of the biggest mistakes I see buyers make is delaying their mortgage pre-approval. Don’t wait. Even if you’re just thinking about buying, I can connect you with a creative, trusted lender who knows how to maximize your purchasing power in today’s market.

That initial conversation will give you clarity around:

• Your realistic price range

• Monthly mortgage payments at current rates

• Loan programs and strategies that fit your goals

Think rates are too high? Let’s explore seller-paid interest rate buy-downs. Tight on cash? We may be able to negotiate seller-paid closing costs.

Over the past year, my buyers have seen big wins, from price reductions to significant seller concessions. The key question is: What matters most to you in a deal? Once I know that, I’ll show you how we make it happen.

Advice for Sellers in 2026

By now, you’ve probably heard me talk about my Five P’s of Selling Real Estate:

Pricing. Preparation. Presentation. Promotion. Protection.

When you nail these five, you set yourself up for a smooth and successful home sale. Ignore them, and you can expect more time on market—and more frustration.

Homes that are properly priced, well-prepared, and professionally presented consistently sell faster and for more money. Overpricing your home or skipping repairs often leads to extended market time and lowball offers.

Patience and Pricing Matter More Than Ever

Depending on your specific Denver neighborhood or micro-market, it’s not unusual to be on the market for several months without an offer. What we do want to see is consistent showing activity and clear feedback.

If you’ve had a dozen showings with no offers, and buyers consistently say you’re overpriced, it’s time to consider an attention-grabbing price adjustment.

Final Advice for Sellers

Affordability remains a challenge for many buyers in 2026. Expect offers that include requests for:

• Closing cost assistance

• Mortgage rate buy-downs

• Additional contingencies

The good news? These deals can often be structured without sacrificing your hard-earned equity. But, it requires smart planning upfront.

I’ve successfully guided clients through some of the slowest real estate markets of the past decade. If you’re considering selling, don’t hesitate to reach out for a consult. I’ll walk you through exactly how to prepare your home for success in the 2026 Denver housing market.