Denver Residential Market Update For May
May displayed continued buyer activity and overall stable pricing conditions across the Denver residential market amidst a decrease in both closings and new listings from last month. In fact, in May, the median sales price was the highest that it has been throughout the beginning of the year. This is all despite the appearance of interest rates being back on the rise as they are currently hovering around 6.52%. The 10-year average for expired listings in May is 734, but we are looking at 1,305 expired listings as of this May, so we are still well above the long-term average. Months of inventory also remained at 3 months in May for the third consecutive month. 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 May 2026.
Supply
In May, we had 6,229 new listings hit the market. This was down (9.2%) from April and down (16.9%) from May 2025. This limits the options for potential buyers.
The total amount of active listings at the end of the month was 13,595. This is up 4.4% from April 2026. The 10-year May average from 2016 to 2025 is 8,419 listings, so we are also above our long-term average for active listings.
The most recent report for detached home construction starts is April 2026. The Denver Metropolitan Statistical Area (MSA) pulled permits on 761 homes. This is lower than the five year average of 976 for April. Year to date construction starts for April 2026 compared to year to date construction starts in April 2025 shows a (10.6%) decline.
In terms of active listings, the supply is in a better position compared to the last three years, but we are also now seeing less new construction starts within the same timeframe.
Demand
Showings are a great leading indicator for demand in the residential real estate market. There were 61,867 showings booked through the largest showing service in the Denver metro area during May.
This is up 5.2% when compared to May 2025. The average amount of showings for May, over the last five years, is 72,275. Therefore, we have fewer showing requests than previous years.
Denver had 3,939 properties go under contract in May 2026. This is up 0.2% compared to April 2026 and is up 1.8% compared to May 2025.
There were 4,017 closings in May 2026 compared to 4,037 in April 2026, representing a (0.5%) decrease. A year ago, we had 4,166 closings in May 2025, so the volume of closings is less year-over-year by (3.6%).
The median days on market for May was 15 days, increased from 14 days in April. This means half of the properties listed are under contract in approximately a little over 2 weeks or less.
The list price to close price ratio remained at 100.00%, indicating that sellers are getting exactly what they are asking.
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
As referenced in the opening paragraph, the median sales price was the highest that it has been throughout the year so far. In May, the median sales price increased from $599,950 to $610,000. This metric includes detached and attached properties. The increase in the median price represents 1.7% growth over April and also 3.3% from May 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 the median price continue to increase as we get deeper into the summer months, as historically, the data shows that is when sellers typically get the most for their homes.
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 13,595 listings on the market and 4,017 closings in May, the months of inventory is at 3 months or 14.50 weeks of inventory. The inventory is starting to rise slightly when compared to April, but with a continued 3 months of inventory, we should expect prices to continue to increase relatively or possibly hit a plateau.
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 persistent buyer activity that we saw in May, demand is going to continue to increase and pace the market, even in the face of presently high interest rates. We believe there is a tremendous amount of pent up demand happening right now and as soon as rates come down, even more buyers will enter the market. A continued three months of inventory points to a Denver residential market that will either see a further increase in listing prices or a possible plateau.
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