The Market Is Finally Rebalancing
After years of bidding wars, waived inspections, and homes selling above list price within hours, Colorado's housing market is entering a new chapter. The data from early 2026 tells a clear story: this is the most balanced market buyers have seen in over five years.
According to REcolorado's January 2026 market report, the Denver Metro area opened the year with a median closed price of $569,000 — down 1% year-over-year — while active inventory surged to 8,203 homes, representing about 18 weeks of supply.
Key Metrics That Matter
| Metric | Jan 2025 | Jan 2026 | Change |
|---|---|---|---|
| Median Price (Denver Metro) | $575,000 | $569,000 | -1.0% |
| Active Listings | 7,457 | 8,203 | +10% |
| Median Days on Market | 41 | 56 | +37% |
| New Listings (MoM) | — | +153% | — |
More Homes, More Time, More Leverage
The surge in inventory is the biggest story. With homes now sitting on the market for a median of 56 days — up from 41 days a year ago — buyers have something they haven't had in years: time.
Time to compare properties. Time to schedule inspections. Time to negotiate. According to market analysts at Corken + Company, existing home sales are projected to rise 14% in 2026, while price growth is expected to slow to a sustainable 4% annually.
Where the Opportunities Are
Best Value Markets Along the Front Range
- Colorado Springs: Still offering entry points below $400,000 with strong job growth in defense and tech sectors
- Aurora and Thornton: Suburban markets with good transit access and median prices 15-20% below central Denver
- Greeley and Loveland: Northern Colorado communities seeing inventory growth and more moderate pricing
- Pueblo: One of the most affordable Front Range-adjacent markets with median prices under $300,000
Mountain Market Update
Mountain communities remain competitive for entry-level inventory under $500,000. However, luxury properties above $1M in areas like Vail, Breckenridge, and Steamboat Springs are seeing price reductions and longer days on market — creating opportunities for buyers with patience and strong financing.
What Sellers Should Know
This doesn't mean the market has crashed — far from it. Home prices in Colorado are still elevated by historical standards, and well-priced, move-in-ready homes in desirable neighborhoods continue to attract multiple offers. But the era of listing any home at any price and receiving offers above ask is over.
Sellers who price competitively, invest in staging, and remain flexible on contingencies will still do well. Those who test the market with ambitious pricing should expect to sit longer.
Our Advice for 2026
Whether you're buying your first home, upgrading, or investing, 2026 offers a rare combination of improving affordability and increased selection. The key is being financially prepared and moving decisively when the right property appears.
Talk to our team at Cedar Home Loans about your options — we specialize in Colorado's unique markets and can help you navigate this shifting landscape with confidence.
