DENVER (KDVR) — Home inventory is piling up in the seven-county Denver metro area, but the Colorado Association of Realtors says that despite there being the most active listings since 2019, home sales are not following the rising trend.

The information was shared in the latest Market Trends Housing Report from the Colorado Association of Realtors, and analysis was provided by the association's spokespeople across Colorado.

“The past five years have left us wondering when the market would balance or be more buyer-friendly and, without a doubt, it is now,” said Aurora-area Realtor Sunny Banka in the analysis.

The association reported that there are over 17,800 active listings in the Denver metro area, up more than 25% from this same time last year. Statewide, the association reported 31,268 listings in May, which is up 27% from May 2024.

“Sellers are now grappling with the realization that they may not net as much for their home as they originally thought," said Fort Collins-area Realtor Chris Hardy. "Proactive sellers need to take a hard look at pricing and perhaps list their home for a bit less than what their neighbor's home sold for a few months ago. Yes, the market is changing that fast.”

However, the association said that sold listings in the Denver metro area were down 3.4% compared to a year ago, but that the volume of pending/under contract properties was up 13% across all types of properties.

“We continue to see a trend of higher inventory of homes on the market and increasingly, data shows we are in a buyer’s market,” said Durango-area Realtor Heather Erb.

Colorado real estate may be a buyers market

Sold listings in Colorado have dropped about 1.8% from last year, while pending/under contracts were up 10.6% in the same period.

“A lack of buyer motivation stemming from higher costs has kept homes on the market longer, causing a ‘pile-up’ effect. The result is a whopping 4.2 months’ supply of inventory, setting a near-15-year record high. Yet, home sellers seem to be remaining optimistic, as more than 17% more new listings have hit the market year-to-date compared to last year,” said Denver Metro-area Realtor Cooper Thayer in the association's analysis.

The association reported that the average price for single-family Denver metro homes rose less than 1% from April to May this year, and is flat from a year ago at $635,000. Meanwhile, condominium and townhome pricing rose 1.6% from April to May, but fell 3.2% from May 2024.

Across Colorado, the average price of a single-family home dropped 1.5% from April to May, at $590,000, which is 1.2% lower than a year ago. Statewide condominium and townhome pricing rose 3.3% from April to May, which means it returned to the same level as May 2024, $420,000.

Denver County realtors see months of inventory

Denver County-area Realtor Cooper Thayer said that home sellers remain optimistic despite a 4.2 months' supply of housing inventory, which is setting a nearly 15-year record high.

"Through uncertainty and turbulence, home prices have displayed impressive persistence, with the year-to-date median sale price climbing about 0.5% over last year," Thayer said.

He said the stability is not visible across the market, with townhomes and condos facing the biggest strain in 2025. The attached homes dropped 3.9% in average price so far this year, compared to the first five months of 2024.

"A combination of diminishing affordability and an easing rental market has created a massive differential in the cost to buy versus the cost to rent, further weakening buyer demand in entry-level segments," Thayer said.

“For the first time in many years, it appears we’ve entered a bona fide buyer’s market, giving homebuyers the upper hand in negotiations," Thayer continued.

He said that buyers who can take on higher interest rates, insurance costs, HOA dues and property taxes will be able to benefit from the current housing market.

"However, all hope is not lost for those looking to sell their home this summer. Prices have remained stable, inventory is still moving (albeit slower), and many prospective homebuyers still have a strong underlying desire to own a Denver metro home," Thayer said.