After being pummeled by frenzied bidding wars and skyrocketing prices, Colorado’s housing market closed 2025 with a dramatic power shift: buyers are back in control.
Rising inventory, longer days on market, and sellers willing to negotiate have ended an era defined by urgency and desperation.
The new reality: patience, not panic, determines who wins.
Seasonal trends and inventory dynamics
December unfolded as expected: new listings slowed, pending sales dipped, and the market entered its seasonal hibernation, according to the monthly report from the Colorado Association of Realtors.
The contradictions continue into 2026—inventory sits elevated statewide, but in pockets across Colorado, the number of homes under contract has plummeted to historic lows.
“2025 felt like a reset year for housing across Colorado,” said Jared Reimer, a Fort Collins-area realtor.
“There were no dramatic advances or retreats, just a market that stayed resilient and balanced despite ongoing economic uncertainty.”
While prices held steady or dipped modestly, demand remained strong for well-located, move-in-ready homes.
Single-family home sales outpaced condo and townhome sales across the state, as surging HOA fees and insurance costs hammered attached housing.
Luxury and resort markets shrugged off economic headwinds, but first-time buyers faced a double squeeze: soaring costs and vanishing inventory.
“The days of listing a home and selling it in a weekend are largely behind us,” said Julia Purrington Paluck, an Evergreen-area realtor. “But that’s not a negative, but rather a sign of a healthier market where pricing accuracy and preparation matter more than urgency.”
A buyer’s market
Colorado’s major metro areas—Denver, Aurora, Boulder, and Colorado Springs—tilted decisively toward buyers throughout 2025.
Homes lingered on the market longer as sellers slashed prices and offered concessions.
Sellers clinging to boom-era price expectations watched days turn into weeks, then months.
Buyers took their time, conducting multiple showings and negotiating.
In Steamboat Springs, Summit County, Telluride, and Vail, wealthy cash buyers kept the market humming.
Sales volumes ebbed and flowed, but prices never budged in premium locations.
Luxury properties—multimillion-dollar chalets and ski-in, ski-out estates—continued to command the lion’s share of transaction dollars, insulated from the affordability crisis squeezing buyers at lower price points.
“The affluent buyer segment is far less sensitive to short-term economic swings,” said Telluride-area realtor George Harvey. “That has brought a level of stability to our market that simply didn’t exist five years ago.”
The outlook for 2026
As 2026 begins, there are signs of cautious optimism.
Mortgage rates drifting down toward 6% have lured back buyers who spent months on the sidelines, priced out and waiting.
Affordability remains a significant challenge as insurance costs rise and economic uncertainty lingers.
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“I anticipate 2026 will look very much like 2025 but with more inventory available to buyers,” said Aurora-area realtor Sunny Banka.
“If you are one of many thinking of selling, you need to fix it up, clean it up, declutter, be prepared to price competitively, and realize that buyers now have a lot of choices.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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