Denver Residential Market Update For September
The Denver residential market experienced more curtailed sales activity in September, evident with a decrease in closings, lower sales prices, and longer selling times from August. Despite this, new and active listings saw an increase in September compared to August, giving buyers more of a stronghold in the market over sellers. Albeit a decrease from last month, the pace of sales were faster year-over-year this September as the median days in the MLS was 31 days, four days shorter than last September. Decreased sales activity can be coupled with the exceptional increase of interest rates as they have shot up to around 7.40%! The 10-year average for expired listings in September is 1,078, but we are looking at 1,963 expired listings as of this September, so we are still well above the long-term average. Months of inventory remained at 5 months from August to September. 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 September 2026.
Supply
In September, we had 5,232 new listings hit the market. This is up 0.2% from August but down 2% from September 2025. A increase in listing activity expands the options for potential buyers.
The total amount of active listings at the end of the month was 14,997. This is up 0.8% from August 2026. The 10-year September average from 2016 to 2025 is 9,862 listings, so we are also above our long-term average for active listings.
The most recent report for detached home construction starts is August 2026. The Denver Metropolitan Statistical Area (MSA) pulled permits on 563 homes. This is lower than the five year average of 779 for August. Year to date construction starts for August 2026 compared to year to date construction starts in August 2025 shows a (0.1%) decline.
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 42,924 showings booked through the largest showing service in the Denver metro area during September.
This is down (11.3%) when compared to September 2025. The average amount of showings for September, over the last five years, is 56,404. Therefore, we have fewer showing requests when compared to previous years.
Denver had 2,769 properties go under contract in September 2026. This is down (7.4%) compared to August 2026 and also down (13%) compared to September 2025.
There were 2,844 closings in September 2026 compared to 3,100 in August 2026, representing a (8.3%) decrease. A year ago, we had 3,453 closings in September 2025, so the volume of closings is less year-over-year by (17.6%).
The median days on market for September was 31 days, increased from 27 days in August. This means half of the properties listed are now under contract in approximately over 4 weeks.
The list price to close price ratio remained the same in September from August at 99.40%, indicating that sellers are now 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 September, the median sales price decreased from $585,000 to $566,750. This metric includes detached and attached properties. The decrease in the median price represents a (3.1%) decline over August and a (2.3%) decline from September 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 slightly rebound going into October before dropping off again heading into the winter season. 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 14,997 listings on the market and 2,844 closings in September, the months of inventory is at 5 months or 22.60 weeks of inventory. There is roughly the same amount of inventory when compared to August, with continued 5 months of inventory solidifying the direction into 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 venture into the middle of the fall season, median sales prices are going to rebound slightly but homes will remain on the market for even longer periods of time. Statistically speaking, fall produces condensed market activity and winter diminishes it even further. Interest rates hovering around 7.40% do not encourage more people to buy either. 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. Five months of inventory suggests a balanced Denver residential market that could be susceptible to continued price decreases if buyer activity proceeds to cool down further.
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