Denver’s home-buying market is leveling out after three years of what the industry has described as “unicorn years” because they were so abnormal. Now, housing stock has returned to pre-pandemic levels, with 6,990 active listings at the end of April compared to 6,855 at the end of April 2020, according to data from the Denver Metro Association of Realtors.

In 2021 there were just 2,594 active listings at the end of April, but that number grew to 4,620 in 2023, so the market has been slowly returning to normal stock. However, data shows housing prices are still much higher than in 2020, when the median closing price was $435,000. So far this year, the median closing price in Denver is $587,500, which is almost 4 percent higher than 2023’s median sale price through April of $565,000.

The impact of rising interest rates

Mortgage interest rates have also impacted the real estate market for homebuyers, Levine says. She observed some potential movers holding out for lower interest rates before selling their homes, but now that it seems interest rates won’t be going down soon, people are biting the bullet.

It’s still not a buyer’s market, but now is the first opportunity there’s been for buyers to have a pretty good shot at homes in the last few years.

When working with clients looking to sell, seasoned pros now tell them to make certain upgrades — whereas two years ago, they knew homes would sell, even with needed improvements, because of the lack of inventory.

April, May and June are the key months for the most competition and the sellers to get the best prices; however, this year, because of the huge increase in inventory, it's a little less so.

From March 2024 to April 2024 alone, the number of new listings jumped by over 21 percent, but those looking to buy in Denver still need nearly $600,000 to afford the median home.

If you’re looking to become a homeowner this summer, now is the time to start looking. Contact Metrowest today and let’s explore your options!