Considering selling in Denver or Colorado Springs, or advising a client through their next move? Based on listing data from the Denver Metro Area and Colorado Springs Metro Area between October 2025 and January 2026, both markets have entered a more competitive phase compared to last year.

While activity remains steady, modest price declines, increased inventory, and longer timelines are shaping seller expectations heading into 2026.

Here is what the numbers show and what they mean in practical terms.

Home Prices are Adjusting

Between October 2025 and January 2026, median listing prices in Denver ranged from $550,000 to $595,500, with year over year changes between -1.6% and -3.5%.

In Colorado Springs, median listing prices ranged from $475,000 to $494,125, with year over year changes between -0.4% and -1.2%.

These figures reflect modest softening rather than a sharp correction. Values are holding, but sellers are no longer benefiting from automatic appreciation. Pricing strategy matters more than it did in a rapidly rising market.

For homeowners, this means realistic expectations are critical. For agents, it reinforces the importance of strong comps and disciplined positioning at launch.

Homes are Taking Longer to Sell

Median days on market ranged from 63 to 79 days in Denver and 68 to 79 days in Colorado Springs, with year over year increases up to 21.3% in Denver and 19.4% in Colorado Springs.

Longer timelines create additional carrying costs. Mortgage payments, utilities, insurance, and property taxes continue while a home is on the market. Extended timelines also increase the likelihood of repair negotiations and buyer credits.

For some sellers, patience and preparation make sense. For others, certainty may outweigh the potential upside of testing the market.

Inventory is Higher Than Last Year

Active inventory ranged from 7,221 to 12,052 homes in Denver and 2,702 to 3,819 homes in Colorado Springs, with year over year increases between 11.1% and 16.9% in Denver and 17.9% and 22.7% in Colorado Springs.

Higher inventory means buyers have more leverage. Sellers are competing not only on price, but on condition and concessions.

In similar environments, buyer credits for closing costs, inspection repairs, and rate buydowns become more common. These concessions can meaningfully impact a seller’s final net proceeds.

Price Reductions Remain Widespread

Between October 2025 and January 2026, listings with price reductions ranged from 19.2% to 38.5% in Denver and 19.8% to 38.2% in Colorado Springs.

In certain months, nearly four out of ten listings reduced their price after coming to market. That level of adjustment signals that initial pricing misalignment is common.

A well-researched launch price is essential in both markets.

What this Means for Homeowners and Agents in Colorado

Neither Denver nor Colorado Springs is experiencing a severe downturn. Homes are selling and both markets remain active.

However, compared to the prior year, conditions are clearly more competitive.

For homeowners, that means evaluating all selling options. A traditional listing may still make sense for many properties. Others, particularly those requiring updates or facing time constraints, may benefit from a more predictable alternative.

Wedgewood Homes purchases properties throughout both Denver and Colorado Springs in their current condition. Our offers account for repair costs and potential concessions upfront, offering clarity around net proceeds and timing.

For real estate agents, we recognize that certain properties or seller situations may not align with a traditional listing strategy. If you are advising a client who prefers certainty, speed, or an as is transaction, we are actively reviewing opportunities in both markets.

In a more competitive environment, having multiple paths available allows homeowners and agents to choose the strategy that best fits the situation.