Denver Residential Market Update For February

February demonstrated a bounce-back period to the Denver residential market with increasingly more closings, fewer expired listings, and substantially shorter selling times than were present in January. Interest rates were also as low as 5.98% at one point in February! Currently, they have increased back up to 6%. The 10-year average for expired listings in February is 665, but we are looking at 1,006 expired listings as of this February, so we are still well above the long-term average. Months of inventory also went down to 4 months in February. Let’s dive into the key market data for the Denver residential real estate market to see what is happening with supply, demand, sales prices, and months of inventory for February 2026. 

Supply

In February, we had 5,239 new listings hit the market. This was up 10.8% from January. It was also up 3.3% from 2025. This expands the options for potential buyers.

The total amount of active listings at the end of the month was 10,405. This is up 4.4% from January 2026. The 10-year February average from 2016 to 2025 is 6,099 listings, so we are also above our long-term average for active listings.

The most recent report for detached home construction starts is December 2025. The Denver Metropolitan Statistical Area (MSA) pulled permits on 606 homes. This is lower than the five year average of 967 for December. Total year to date construction starts for 2025 compared to total year to date construction starts in 2024 shows a (18.9%) decline.

In terms of active listings, the supply is in a better position compared to the last three years, but we are also seeing less new construction starts.

Demand

Showings are a great leading indicator for demand in the residential real estate market. There were 55,104 showings booked through the largest showing service in the Denver metro area during February.

This is up 9.4% when compared to February 2025. The average amount of showings for February, over the last five years, is 80,379. Therefore, we have fewer showing requests than previous years.

Denver had 3,612 properties go under contract in February 2026. This is up 30% compared to January 2026 and is also up 16.1% compared to February 2025.

There were 2,699 closings in February 2026 compared to 1,964 in January 2026, representing a 37.4% increase. A year ago, we had 2,700 closings in February 2025, so the volume of closings is the same across two years.

The median days on market for February was 32 days. This means half of the properties listed are under contract in 32 days or less.

The list price to close price ratio increased to 99.50% indicating that sellers are typically getting what they are asking.

All in all, demand for housing is softer when we look at showings and when we look at closings. Let’s look at the median sales price.

Sales Prices

In February, the median sales price increased from $560,000 to $574,900. This metric includes detached and attached properties. The median price increased over 2.7% January but is now down (2.7%) from February 2025.

The long-term average appreciation for residential real estate is 6%. Higher prices and higher interest rates will continue to temper appreciation in the short run. Tight inventory is helping to prop up the market.

Although prices are down slightly from last year, we are encouraged to see the median price increasing as we get into the spring season.

Let’s look at months of inventory now.

Months of Inventory

Months of inventory is a great indicator to watch for market trends. Typically, a seller’s market has 0-3 months of inventory. A balanced market has 4-6 months of inventory, and 7+ months of inventory is a buyer’s market. In a seller’s market prices go up. In a buyer’s market prices go down.

With 10,405 listings on the market and 2,699 closings in February, the months of inventory is at 4 months or 16.52 weeks of inventory. Therefore, the inventory is relatively balanced when compared to the demand.

All in all, months of inventory is a great metric to watch.

Final Thoughts

In conclusion, supply, demand, median sales price, and months of inventory are ideal key performance indicators to watch for market trends. Supply is way higher than the record lows of 2021 and 2022 and is also higher than the long-term average. Overall demand remains softer with high interest rates, but it appears to be rebounding as evidenced by more closings and fewer days on the market. We believe there is a tremendous amount of pent up demand happening right now and as soon as rates come down, more buyers will enter the market. Four months of inventory points to a balanced Denver residential market for now.

Here is a link to the full presentation: