Denver Residential Market Update For October 2026
The Denver residential market experienced further seasonal slowdown in listing and contract activity in October, evident with decreases in new listings and closings alongside an increase in expired listings from September. However, these month-over-month trends closely aligned with the year-over-year statistics. Every key market metric moved in the same direction compared to September and October 2025, highlighting consistency of decreased transactions and condensed listing activity in the fall season. Median sales prices did rebound slightly month-over-month, in accordance with our predictions, but selling times experienced a slight drop, which directly contrasts with our predictions. This shift ended several months of increasing marketing times. Interest rates cooled down slightly in October as they are now hovering around 7.18%. The 10-year average for expired listings in October is 1,186, but we are looking at 2,071 expired listings as of this October, so we are still well above the long-term average. Months of inventory remained at 5 months from September to October. 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 October 2026.
Supply
In October, we had 4,432 new listings hit the market. This is down (15.2%) from September and down (9.2%) from October 2025. A decrease in listing activity limits the options for potential buyers.
The total amount of active listings at the end of the month was 14,562. This is down (4.2%) from September 2026. The 10-year October average from 2016 to 2025 is 9,387 listings, so we are also above our long-term average for active listings.
The most recent report for detached home construction starts is September 2026. The Denver Metropolitan Statistical Area (MSA) pulled permits on 552 homes. This is lower than the five year average of 705 for September. Year to date construction starts for September 2026 compared to year to date construction starts in September 2025 shows an 0.4% increase.
In terms of active listings, the supply is in a better position compared to the last three years, but we are now starting to see less new construction starts over the same three-year period.
Demand
Showings are a great leading indicator for demand in the residential real estate market. There were 41,062 showings booked through the largest showing service in the Denver metro area during October.
This is down (16.5%) when compared to October 2025. The average amount of showings for October, over the last five years, is 56,360. Therefore, we have fewer showing requests when compared to previous years.
Denver had 2,498 properties go under contract in October 2026. This is down (5.6%) compared to September 2026 and also down (19%) compared to October 2025.
There were 2,739 closings in October 2026 compared to 2,860 in September 2026, representing a (4.2%) decrease. A year ago, we had 3,399 closings in October 2025, so the volume of closings is less year-over-year by (19.4%).
The median days on market for October was 30 days, decreased from 31 days in September. This means half of the properties listed are now under contract in approximately just over 4 weeks.
The list price to close price ratio decreased in October from September at 99.10%, indicating that sellers are still getting generally what they are asking for.
All in all, demand for housing is stronger when we look at showings and when we look at closings. Let’s look at the median sales price.
Sales Prices
In October, the median sales price increased from $567,000 to $580,000. This metric includes detached and attached properties. The increase in the median price represents a 2.3% improvement over September and no change from October 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.
We are encouraged to see median prices drop off going into November. Historically, the 10-year market data supports this as being the trend.
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 14,562 listings on the market and 2,739 closings in October, the months of inventory is at 5 months or 22.79 weeks of inventory. There is the same amount of inventory when compared to September, both based on months and weeks of inventory, with 5 months continuing the prevalence of a more balanced market.
Overall, 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. Based on the historical data, as we progress into the end of the fall season, median prices are going to drop off and homes will remain on the market for longer periods of time, although selling times did decrease from September to October. Typically, fall produces condensed market activity and winter diminishes activity further. Interest rates hovering above 7% do not encourage more buyers to enter 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 proceed to enter the market. Continued five months of inventory suggests a balanced Denver residential market but that is also susceptible to price decreases.
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