The Colorado housing market continues its steady, if uninspired, shuffle into spring. Think less sprint, more tortoise… determined, slightly weary, and not in a particular rush.
The Denver Metro Association of Realtors’ March numbers (which inform this April market snapshot) suggest we’re in for another season of contradictions: more listings but persistent affordability issues, slight buyer power but only for the few willing to take the leap, and no clear resolution in sight. The market decidedly isn’t crashing, but it’s also not going anywhere in a hurry.
A Colorado Housing Market That’s Moving. But Not Fast.
New listings jumped 32.47% from February to March, signaling that more sellers are testing the waters as the spring season begins. Year-over-year, that’s still a 29.06% increase. Substantial enough to say that homeowners may finally be less gun-shy about entering the market after two years of rate-induced sticker shock.
Active listings at the end of March were up 14.15% month-over-month and a staggering 66.93% year-over-year, reflecting just how tight things were last spring and how much that tide is turning now. Basically, it means more choice for buyers (but not necessarily less cost).
So, we’ve got more homes on the market. But is that translating into movement?
Sort of.
Pending sales surged 40.81% month-over-month and are up 14.09% compared to this time last year. That’s the most promising stat we’ve seen in months. Buyers are coming out, likely coaxed by a mix of seasonal urgency, seller concessions, and slight improvements in rate stability.
But while pending sales are up, closed sales only rose 25.36% from February and are still down 5.13% year-over-year. In other words, people are shopping, even writing offers, but deals are taking longer to close… or falling through altogether.
Prices Are Holding (For Now)
The biggest question most Denver buyers and sellers ask: what’s happening with prices?
Short answer? Not much.
Average closed prices dipped 0.83% from February and 0.32% from last March, landing just a hair below where they were a year ago.
Median prices fared better, down only 0.17% month-over-month and up 0.67% year-over-year. That slight softening isn’t a crash. In fact, most experts say the market is unlikely to fall off a cliff anytime soon.
So no, we’re not in a bubble. We’re just in a weird, expensive stalemate.
Buyer Behavior Is Shifting
As the market gets marginally more balanced, buyers are gaining a little leverage… especially with time on their side.
Days on MLS dropped by 14.29% month-over-month (from 56 days in February to 48 in March). Still, that’s a 23.08% increase year-over-year, so homes are sitting a bit longer than they did last spring.
Median days on market dropped even more sharply: down 37.93% from February but still 63.64% higher than March 2024. So, while homes are moving faster than they were in the dead of winter, this spring market is still a bit shy compared to past years.
The close-price-to-list-price ratio rose slightly to 99.72% (a 0.27% increase month-over-month), but it’s still down 0.47% compared to last year. Buyers are negotiating a bit more. And some sellers are listening.
Affordability: Still the Elephant in the Room
Despite marginally more inventory and fewer bidding wars, affordability isn’t improving. That’s not just a Denver problem. It’s a national one. And it’s not just about rates or prices, either.
Here’s where macroeconomics crashes the local party:
Tariffs from the Trump administration will affect the prices of building materials. With tariffs now hovering around 40%, the National Association of Home Builders (NAHB) estimates that new homes cost $7,500–$10,000 more than they otherwise would.
In short: even if existing homes stabilize, new builds will likely stay pricey. Builders are scaling back, redesigning for smaller footprints, or pausing developments altogether. And that means fewer new homes entering the pipeline to help relieve demand.
That price pressure can keep first-time buyers locked out, even when prices inch down.
Interest Rates: Calm, But Still High
Rates have flattened, which is at least helping buyer confidence. But they’re still historically high (and that’s holding affordability hostage). While a drop in rates could supercharge the market again, most experts expect any reductions to be modest.
Is the "Silver Tsunami" Coming?
One possible future market shift has nothing to do with interest rates or inflation.
The so-called "silver tsunami" — an expected wave of baby boomers exiting homeownership — is beginning to show early signs of influence. As boomers move into long-term care or pass away, more homes are expected to hit the market. Because this wave of homes won't be replaced by boomer purchases, it adds net inventory.
That’s not an immediate fix. But in the coming years, it could loosen supply, relieve price pressure, and open the door for first-time buyers. It won’t solve everything, but it could help rebalance a long-skewed system.
Corcoran Perry & Co. Featured Listing: 5800 Wood Sorrel Drive, Bow Mar South
What To Watch As We Head Toward Summer
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More Listings, Less Frenzy: The rise in inventory may continue, especially if more sellers accept the new normal of higher rates. But don’t expect a flood. Many homeowners are still locked into 3% mortgages and staying put.
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Slight Buyer Edge: Buyers can push for concessions again, especially on homes that have lingered on the market. Pre-inspections, rate buy-downs, and even price reductions are back on the table.
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Affordability Will Stay Tight: Until rates drop meaningfully or wages catch up (or both), affordability will remain a challenge for many. And with tariffs pressuring new build costs, relief is limited.
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No Crash Coming: Supply is still too low, and today’s homeowners are too stable for a 2008-style collapse. Instead, expect a slow correction toward balance.
The tale of the tortoise and the… habitually unaffordable Colorado housing market.
March brought signs of life to the Colorado housing market, but not a full revival. Inventory is up, buyer activity is improving, and price growth has cooled. But, affordability challenges, stubbornly high rates, and policy-related costs continue to weigh things down.
If you’re a buyer, this spring could offer rare breathing room (especially compared to the chaos of 2021–2022). If you’re a seller, it’s still a good time to list, but it’s not 2021 anymore. Pricing and presentation matter more than ever.
And if you’re just watching from the sidelines, stay tuned. Colorado’s housing market might not be sprinting, but it’s still moving, and it might take some twists and turns this year.
Ready to make your next move? Our Denver real estate experts can be your guide.
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