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January 2026 Market Update: December 2025 Wrap-Up for the Denver Metro Area
If you’re looking for a clear-eyed Denver real estate market update as we move into 2026, December gave us exactly that: clarity. Not fireworks. Not chaos. Just a market that has found its footing and is behaving more predictably than it has in years.
According to the Denver Metro Association of Realtors®, December 2025 continued the stabilization trend that has defined the past three years. Buyers and sellers alike are operating in a more balanced environment, shaped less by frenzy and more by strategy.
Pricing: Flat Is the New Normal
The median close price across detached and attached homes finished December at $575,000, down just 0.86 percent month-over-month. That slight dip is less a signal of weakness and more a reflection of seasonal pullback and affordability pressures that dominated buyer decision-making throughout 2025.
Stepping back, this matters: after a 38.5 percent run-up in values between 2020 and 2022, the market has spent the last few years rebalancing. Prices are no longer sprinting, but they’re also not collapsing. Stability has replaced speculation, and that’s healthy.
Inventory and Activity: Buyers Have Options, Sellers Need Precision
At the end of December, active listings dropped to 7,607, a 27.59 percent decline from November, driven largely by sellers temporarily pulling listings during the holidays. Historically, inventory does fall at year-end, but this year’s drop was steeper than the long-term seasonal average, and many of these homes are expected to return to the market early in 2026.
Even with that decline, buyers are not short on choices. Months of inventory sat at 2.45, well above the ultra-tight conditions of prior years, while median days on MLS increased to 45 days, reinforcing that homes are taking longer to sell and buyers are taking their time.
Closed sales totaled 3,101, down 9.23 percent month-over-month, while pending sales fell nearly 20 percent, reflecting the typical year-end slowdown rather than a sudden drop in demand.
Buyer and Seller Behavior: A Strategic Market
DMAR’s Market Trends Committee summed it up well: 2025 was a year of thoughtful adjustment. Sellers made pricing changes, offered concessions, and leaned into rate buydowns. Buyers showed interest and motivation, but they moved carefully, often touring extensively before committing.
This is no longer a market where “testing the price” works. Homes that are competitively priced and well-prepared are still selling. Homes that aren’t are sitting. Strategy matters more than timing.
Detached vs. Attached Homes: A Growing Divide
One of the most important trends to watch heading into 2026 is the widening gap between detached and attached properties.
Detached homes continue to outperform, while attached homes are facing greater pressure from rising HOA dues and affordability constraints. Over the past year, attached home prices declined while detached home prices remained relatively flat. Buyer preference for space and flexibility is still very real, and it’s shaping outcomes across price points.
Looking Ahead to 2026
The data suggests we are entering 2026 with modest expectations and steadier footing. Mortgage rates remain in the low to mid sixes, inventory is likely to build again as paused sellers return, and buyers will continue to hold leverage in negotiations.
This is not a market for autopilot decisions. Buyers benefit from creative financing strategies and patience. Sellers benefit from sharp pricing, strong presentation, and realistic expectations from day one.
And honestly, that’s not a bad thing.
A calmer market rewards preparation, good advice, and clear decision-making. If you’re considering a move in 2026, understanding how these trends apply to your specific home or your specific buying power matters far more than headlines ever will.
If you’d like to talk through what this Denver real estate market update means for you personally, let’s set up a time to discuss your real estate plans. Or if you are just keeping an eye on things for the time being, give me a follow on Instagram to stay informed.
