Denver Residential Market Update For July

The Denver residential market demonstrated a notable shift in July, with rising prices and quicker sales YOY alongside a pullback in overall transaction volume, consisting of a decrease in both closed listings and listings that went under contract. This pullback in transaction volume is a result of overall tempered sales and listing activity, and this is not helped by rapidly increasing interest rates. Rates have currently shot up to around 6.67%. The 10-year average for expired listings in July is 954, but we are looking at 1,751 expired listings as of this July, so we are still well above the long-term average. Months of inventory also remained at 4 months in July for the second month in a row. 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 July 2026.

Supply

In July, we had 5,775 new listings hit the market. This is down (4.4%) from June but up 1.5% from July 2025. A decline in listing activity limits the options for potential buyers.

The total amount of active listings at the end of the month was 14,763. This is up 2.4% from June 2026. The 10-year July average from 2016 to 2025 is 9,658 listings, so we are also above our long-term average for active listings.

The most recent report for detached home construction starts is June 2026. The Denver Metropolitan Statistical Area (MSA) pulled permits on 675 homes. This is lower than the five year average of 988 for June. Year to date construction starts for June 2026 compared to year to date construction starts in June 2025 shows a (6.9%) decline.

In terms of active listings, the supply is in a better position compared to the last three years, but we are now continuing to see 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 50,755 showings booked through the largest showing service in the Denver metro area during July.

This is down (7.1%) when compared to July 2025. The average amount of showings for July, over the last five years, is 62,529. Therefore, we have fewer showing requests when compared to previous years.

Denver had 3,192 properties go under contract in July 2026. This is down (8.5%) compared to June 2026 and is also down (5.4%) compared to July 2025.

There were 3,611 closings in July 2026 compared to 3,986 in June 2026, representing a (9.4%) decrease. A year ago, we had 3,757 closings in July 2025, so the volume of closings is less year-over-year by (3.9%).

The median days on market for July was 21 days, increased from 18 days in June. This means half of the properties listed are under contract in approximately 3 weeks.

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

In July, the median sales price slightly decreased from $604,250 to $599,900. This metric includes detached and attached properties. The decrease in the median price represents a (0.7%) decline over June but 3.4% growth from July 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 prices continue to decrease going into August, as 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 14,763 listings on the market and 3,611 closings in July, the months of inventory is at 4 months or 17.52 weeks of inventory. The inventory is stagnant when compared to June, with a continued 4 months of inventory indicating a steady stabilization into a more balanced market, where we should expect prices not to fluctuate as much.

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 head into August, median sales prices are going to start to fall and homes will remain on the market for longer periods of time. Continued high interest rates will proceed to prop up these assumptions. 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 prolonged four months of inventory points to a increasingly balanced Denver residential market.

Here is a link to the full presentation: