Denver Market Sees Sharpest Price Cuts in Five Years

Denver home sellers reduced prices on 42% of active listings in March, the highest share in five years and up from 28% in the same month last year. The Denver Metro Association of Realtors (DMAR) released the figure in its monthly Market Trends Report published April 8.

The elevated price-cut share accompanied a buildup in inventory. Active listings in the seven-county Denver metro reached 8,217 at the end of March, up 26% from a year earlier and the highest March level since 2016. Closed sales rose 4.2% year-over-year but remained 18% below the March 2020 benchmark.

The median close price for the metro stood at $612,500, up just 0.8% year-over-year. Single-family detached homes sold at a median of $672,000, while attached homes (condos and townhomes) closed at $412,000. Redfin data showed Denver condos posted the sharpest declines, with the median down 4.1% year-over-year.

"Denver is showing characteristics of a buyer's market in several price tiers, particularly above $800,000," said Libby Levinson-Katz, chair of the DMAR Market Trends Committee. Levinson-Katz said sellers entering the market with pricing based on 2022 comparables are experiencing extended days on market.

Properties averaged 43 days on market in March, versus 32 a year earlier. Price per square foot among closed listings declined 1.8% year-over-year, compared with the 3.1% decline recorded in Austin or 4.5% in parts of Phoenix. Denver's decline is more modest than some Sun Belt peers but larger than most Midwest metros.

Buyer demand has adjusted to the friendlier conditions. Online home-search activity for the Denver metro on Realtor.com rose 6% year-over-year in February. First-time buyer share increased to 32% from 27% a year earlier, per DMAR survey data.

Colorado legislation effective January 1, 2026 may add further pressure. HB24-1152 mandated that homeowners association dues disclosures be delivered earlier in the transaction process. Combined with insurance disclosures expanded in a separate 2025 bill, Denver transactions now include more opportunities for buyer re-evaluation. Some title companies report longer average closing timelines as a result.

Looking ahead, local economists expect price softness to persist through mid-2026 as the inventory overhang works through the system. Ryan Carter, chief economist at the Colorado Association of Realtors, projected that metro median prices will remain within a narrow band of $605,000 to $625,000 through Q3 2026 before renewed modest appreciation in the final quarter of the year.