Ok, its nearing the end of 2025 so let’s talk Denver Housing Market Predictions for 2026. There is so much chatter out there right now and it is really hard to know which way the predictions will go. So let’s look at a few in particular.
Denver 7 had realtor.com’s forecast listed for Denver as seeing falling home sales and prices. The forecast projects home sales to decrease by 2.9% and home prices to drop by 3.4%.
Not specific to Denver but across the Country Zillow is predicting a slight rebounding market with home prices rising by 1.2% after being pretty flat this year and interest rates staying in the low 6’s. They are predicting a 4.3% rise in existing home sales.
Redfin are predicting what they call the great housing reset. The are predicting mortgage rates will drop in the low 6% range, wages will grow faster than prices improving affordability, Home sales will rise by 3%. They also had some predictions that rent prices will go up, policymakers will become more united and that more Americans will refinance and remodel. Now if more Americans are refinancing and remodeling to me that means less are going on market again.
So you can see we have a mixed bag here, one saying falling home sales and prices, one saying a rebound and one stating it will reset and stabilize.
What are my thoughts on the Denver Housing Market
After watching this year and seeing decreases in certain areas on home prices, it is anyones guess really. However, if job losses keep stacking up, affordability in general stays a issue and interest rates stay where they are now or only see slight drops, I think the market will continue to slightly decrease.
When affordability is a issue and our economy is not doing so well, people can’t afford homes. It makes sense to me that this brings out less buyers. Even if home prices drop slightly here in Denver homes are still seen as unaffordable to most at this point in time.
I am seeing more people renovating myself. This means less inventory may be on the market next year then this year. That may help sales pick up slightly. This year we had more inventory than buyers and that helped with the decreasing prices. Buyers were able to be much pickier and those homes that needed updating, remodeling, major work saw some large price decreases. I believe this will continue at least into early 2026.
I think the best prediction of what our market will do will be the Spring market. Do we return to a normal market cycle where the most sellers and buyers are out in Spring, or do we see a quieter Spring? Returning to a normal Spring market will let us know the market is stabilizing. If it is quieter we can expect more price dropping in 2026.
So stay tuned and I will be sure to update you again once that Spring market arrives. As stated above this is also going to depend on what happens with affordability and interest rates! They are all connected, when people feel confident, they will buy, when they are not confident sales will drop.
