Local experts are saying “it’s not a good time to sell a house” in the Denver metropolitan area and Colorado Springs as the market continues to shift toward homebuyers.
“There is a bright side,” Denver real estate agent Cooper Thayer said in a statement. “When selling gets tougher, buying gets better and today’s market gives buyers more leverage and choice, even with higher rates.”
In September, home price growth reached its strongest level since February, according to a Homes.com analysis. It also found that the median sales price for the Denver metropolitan area increased 1.9% last month, rising to $585,000, which is $11,000 more than in September 2024.
In Colorado Springs, Homes.com data showed the overall median sales price was $460,000 in September. In August, it was $456,500. In September 2024, it was $462,350.
“The status quo continues. There was an extended time when every month we wrote about the never-ending seller's market where every buyer either gave it all up to the seller or they did not get to buy,” Colorado Springs real estate agent Patrick Muldoon said in a statement.
Denver now ranks 13th for price growth out of the top 40 markets in the country, trailing behind Cincinnati, which saw a 2% increase, according to Homes.com data. The top market is Pittsburgh, which experienced a 7.6% increase in September.
“By most metrics, this is the strongest buyer footing in years, and by some measures in decades, with more time to decide, more options to choose from and more room to negotiate,” Thayer said.
Inventory decreases slightly
Listing growth across the Denver metro was lower than the national average of 22%, according to Homes.com data. The 19.1% growth in September placed Denver roughly in the middle among the 40 largest metropolitan areas in the country.
The listings peaked at a 14-year high in July, with 17,000 homes on the market. That fell to about 16,300 in September, according to Homes.com data.
In Colorado Springs, there were 4,958 listings in September, according to Homes.com. In August, there were 5,113. In September 2024, there were 4,146.
Muldoon said there is a lot to consider for both buyers and sellers, but homeowners have a lot more to think about in terms of a sale.
“With so many homes on the market and buyers only half committed to buying, even the simplest of inspection items can make a buyer move on,” Muldoon said. “Agents and lenders are emotionally on edge. Listing agents try to explain a very unpredictable situation to sellers.”
He added that there are many questions to ask: Should sellers agree to the demands, reduce the price or negotiate harder and risk the buyer walking away?
“This is the gauntlet we all are traversing while trying to move homes,” Muldoon said. “Buyers have it much easier: [There are] plenty of homes to choose from, and if anything doesn’t go in favor of the buyers, they can actually go find another home.”
Condos see movement in inventory
There were 1,681 condominium units listed for sale in the Denver region last month, representing an 18.3% increase over the previous year, according to Homes.com data.
In Colorado Springs, there were 223 condos listed last month and 240 in August. These are both increases from September 2024, when there were 199, Homes.com data shows.
“Local Realtors have noted that condos for sale are in high supply, constraining price growth,” said Jeannie Tobin, director of market analytics for Homes.com.
Tobin said a combination of factors is causing this, including the high office vacancy rate in downtown Denver, the number of new luxury apartment buildings, increases in homeowners association dues, and more stringent lending guidelines for condos.
“Condos are in high supply in downtown Denver, which consists of the Lower Downtown and Central Business District neighborhoods,” Tobin said. “Downtown Denver has been one of the most heavily supplied apartment areas across the country in recent years, and landlords are offering generous concessions to entice renters, which is likely pulling demand away from the condo market.”
The bottom line shows the market is rebalancing locally
Thayer explained that, overall, the trends are showing "a rebalancing, not a breakdown” of the market.
“If rates stay high and affordability stays tight, expect negotiation power and pricing strategy to remain the central themes through year-end,” he said.
Muldoon said that while the numbers indicate a seemingly stable market in Colorado Springs, there are still national factors that impact real estate overall.
“Gold and silver continue to hit new highs. Although good for precious metal holders, gold tends to be a barometer on the economy, and it appears there are concerns,” Muldoon said. “Actual equity in housing dropped nationwide, showing many areas are pulling back on values from their once absurd peaks.”
Muldoon also pointed out the effects of the government shutdown, which is in its third week.
“We need a change in direction, or what lies ahead appears to be higher unemployment and a worsening economy, which does not help our already questionable housing market,” Muldoon said.