Denver Residential Market Update For March

March started to build momentum across the Denver residential market with substantially more closings, more new listings, and selling times that were nearly cut in half compared to February. Interest rates were relatively low throughout the month although currently, they have increased back up to 6.46%. The 10-year average for expired listings in March is 692, but we are looking at 1,148 expired listings as of this March, so we are still well above the long-term average. Months of inventory also went down to 3 months in March. 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 March 2026. 

Supply

In March, we had 6,211 new listings hit the market. This was up 18.6% from February, but it was down (6.7%) from 2025. This expands the options for potential buyers.

The total amount of active listings at the end of the month was 11,189. This is up 4.0% from February 2026. The 10-year March average from 2016 to 2025 is 6,701 listings, so we are also above our long-term average for active listings.

The most recent report for detached home construction starts is January 2026. The Denver Metropolitan Statistical Area (MSA) pulled permits on 465 homes. This is lower than the five year average of 795 for January. Year to date construction starts for January 2026 compared to year to date construction starts in January 2025 shows a (33.9%) decline.

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

Demand

Showings are a great leading indicator for demand in the residential real estate market. There were 66,327 showings booked through the largest showing service in the Denver metro area during March.

This is down (1.6%) when compared to March 2025. The average amount of showings for March, over the last five years, is 84,447. Therefore, we have fewer showing requests than previous years.

Denver had 4,424 properties go under contract in March 2026. This is up 31.1% compared to February 2026 and is also up 5.2% compared to March 2025.

There were 3,669 closings in March 2026 compared to 2,739 in February 2026, representing a 34.0% increase. A year ago, we had 3,564 closings in March 2025, so the volume of closings is greater this year within the same timeframe.

The median days on market for March was 16 days, cut down from 32 days in February. This means half of the properties listed are under contract in 16 days or less.

The list price to close price ratio increased to 100.00% indicating that sellers are getting exactly 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 March, the median sales price increased from $570,00 to $585,000. This metric includes detached and attached properties. The median price increased over 2.6% February but is down (0.7%) from March 2025.

The long-term average appreciation for residential real estate is 6%. Rising prices and 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 deeper into the spring season and when summer rolls around.

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 11,189 listings on the market and 3,669 closings in March, the months of inventory is at 3 months or 13.07 weeks of inventory. Therefore, the inventory is starting to become lower 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 gaining momentum as evidenced by more closings and shorter selling times. 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. Three months of inventory points to a Denver residential market that is going to start seeing an increase in listing prices.

Here is a link to the full presentation: