More inventory and increased negotiating room are shaping the Denver Metro housing market as the market settles into a new rhythm, according to the Denver Metro Association of Realtors®’ September Denver Metro Real Estate Market Trends Report.
Closed sales fell 11.71% month-over-month and 21.39% year-over-year to 2,849 in September, the fewest September closings recorded since 2008. Pending sales also declined, falling 6.07% to 2,908.
The September closings largely reflect homes that went under contract in August, when 30-year fixed mortgage rates were around 6.7%. Rates climbed throughout September, reaching about 7.5% by the end of the month.
Year-to-date closings were down 4.96% compared with 2025, with the gap widening from August.
Despite the decline in sales, several market measures remained relatively consistent. The year-to-date median close price for detached homes was $650,000, matching the previous two years. The close-price-to-list-price ratio was 98.45% in September, compared with 98.32% a year earlier. Median days in the MLS fell to 32 from 35 year-over-year.
Inventory reached 13,567 active listings at the end of September, resulting in 4.76 months of inventory. According to DMAR, that level gives buyers more selection and room to negotiate.
Condos and townhomes offered even more inventory, with 7.21 months available. The median close price for attached properties was $365,500, down 6.28% from a year earlier.
“As October begins, the fourth quarter tends to reward buyers who keep moving while others wait for a fresh start after the New Year,” said Amanda Snitker, chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Active listings typically taper through the fourth quarter, and some sellers will pull their homes for the holidays. Buyers who remain in the market will face less competition than at any other time of year.”
Snitker said rate buydowns, seller-paid concessions and adjustable-rate loans are among the options being considered as mortgage rates move into the 7% range.
“The real test of September’s rate climb comes over the next two months,” Snitker said. “If the market responds the way it has to every other shift over the past four years, the lesson will be the same one it keeps teaching: the opportunities here don’t hinge on rates falling or prices climbing — they belong to the buyers and sellers who keep an eye on where the market is going and have the right people in their corner to get there.”
Luxury segment remains active
The $1 million-plus segment showed stronger sales activity than the broader market. Year-to-date sales in the segment were up 1.99%, with 4,449 closed sales so far this year. Sales volume increased 3.17% to $7.30 billion.
New listings in the $1 million-plus segment increased 12.15% month-over-month in September. Listings in the segment spent a median of 21 days in the MLS, compared with 32 days across the broader market. Detached homes in the segment had a median of 19 days.
Attached properties also posted gains in the $1 million-plus segment. Year-to-date closed sales were up 6.35%, with homes spending a median of 23 days in the MLS.
Sales increased across all three luxury attached segments tracked by DMAR: 5.60% for properties priced from $1 million to $1.5 million, 5.41% for those from $1.5 million to $2 million and 11.11% for properties priced at $2 million or more.
“When you have room to maneuver, you can make a move — and right now, Denver’s $1 million+ market has plenty of it,” said Michelle Schwinghammer, a DMAR Market Trends Committee member and Metro Denver Realtor®. “While lower price segments struggle, this segment isn’t waiting for conditions to improve. It’s capitalizing on the opportunities already in front of it.”