Denver Market Update: Inventory Is Higher. Rates Just Hit a Major Low

A Personal Note
It has been a full and encouraging start to the year. My daughter is heading into her senior tennis season, and with the warmer weather we’ve been enjoying, it already feels like spring is in full swing. Most days have been in the 60s and even low 70s, which is not typical for this time of year in Colorado, but we will take it.

My wife and I are doing well and adjusting to the reality that we will be empty nesters before long. This season of life has a different feel, and it has given me time to reflect and refocus. I spent much of late last year leaning into marketing, sharpening strategy, and preparing for what I believed would be a stronger 2026. That preparation is already paying off.

Business has picked up steadily since the end of 2025. I currently have two active listings (see below), five more preparing to come to market in the next few months, and I am working with three buyers. Conversations that paused last fall are turning into real movement this spring.

We have not made it up to the mountains much this year. Snowpack is hovering around 50 percent in many areas, and the warmer temperatures have shifted priorities. But the upside is that early spring weather has helped energize the real estate market sooner than expected.

Below is a breakdown of what I am seeing and why 2026 is shaping up to be stronger than 2025.

Inventory Is Higher. Rates Just Hit a Major Low.
Last fall, total active listings across the Denver metro area climbed to between 12,000 and 13,000 properties. That marked the highest inventory levels we’ve seen in roughly 12 years. At the same time, we were sitting at nearly 7 weeks of inventory, giving buyers more leverage and slowing overall momentum. Today, that number has tightened to around 4-5 weeks of inventory.

Properties in desirable neighborhoods that are priced correctly, staged well, and show clean and updated are selling quickly. Buyers are active, but they are selective. Turnkey homes are generating strong showing traffic and solid offers. On the other hand, homes that are dated, need visible repairs, or simply do not show well are sitting longer and requiring price adjustments.

Every city and neighborhood across the Denver metro area behaves a little differently, so these are broad observations rather than hyper-local statements. In general, presentation, condition, and pricing strategy are clearly separating the homes that move from the homes that sit.

Mortgage Rates Just Hit Their Lowest Level Since August 2022
Last week, mortgage rates dropped to their lowest levels since August 2022.

These are not the record lows we saw during the pandemic, but this is a meaningful shift. Rates briefly moved into the high 5 percent range before settling slightly above that. Our team has consistently said that once rates return to the 5 percent range, buyer activity would increase, and we are seeing that play out. Even small improvements in affordability bring buyers off the sidelines.

We are already seeing increased showing activity, and this is happening during a time of year when Denver is typically slower due to weather. Instead of snow delays and light traffic, we are seeing early spring conditions and renewed energy in the market.

What About the New Fed Chair?
There has been speculation surrounding the nomination of a new Fed Chair and whether that could push mortgage rates lower when the current term ends in spring 2026.

Here is the simplified version. A new Fed Chair who supports rate cuts does not automatically mean lower mortgage rates. Mortgage rates typically move before the Fed acts. By the time the Fed announces a rate cut, financial markets have already priced that expectation in.

We saw this clearly in late 2024. Mortgage rates hit their lows before the Fed began cutting. After cuts started, rates moved higher.

While headlines about a rate-friendly Fed Chair sound promising, mortgage rates respond more to inflation trends, economic data, and broader market expectations than to the announcement itself.

What This Means for Denver
Right now we have:

One of the highest overall inventory levels in more than a decade
Inventory tightening from seven weeks to four
Mortgage rates at their lowest levels since August 2022
Early signs of increased buyer activity heading into spring
That combination creates opportunity.

For buyers, you still have selection and negotiating leverage, but momentum is building.

For sellers, competition is real. Pricing and preparation matter more than ever. The homes that are positioned correctly are the ones moving.

The Denver market is not overheated and it is not stalled. It is recalibrating and spring could accelerate that shift if rates continue trending favorably.

If you are considering making a move in 2026, now is the time to build a strategy before the market speeds up.

Current Listings:
2480 W Jamison Way, Littleton, CO at $1,150,000 Photos and details

11873 E Fair Ave, Greenwood Village, CO at $665,000 Photos and details