Inventory on the Rise
What It Means for Buyers and Sellers
After years of tight supply, Denver is entering a new phase of the real estate cycle. We’re now seeing inventory build at a pace that’s putting us in national conversations—not for scarcity, but for growth. According to a report published in April, Denver ranks third behind San Jose and Las Vegas for the fastest-growing unsold inventory. It’s a notable shift, and while the swing from ultra-competitive to moderate may feel dramatic, what we’re seeing is a market that’s finally balancing out. In most neighborhoods, sellers are no longer fielding a dozen offers overnight—now, they’re competing with their neighbors to win over buyers.
As inventory builds, preparation and timing are everything. For both buyers and sellers, understanding the current rhythm of the market is key. In May, the number of new listings rose again—up 3.26 percent for detached homes and 2.80 percent for attached homes. That steady increase means more options, more comparisons, and more competition. It also means that those entering the market with a clear strategy have an edge.
By the end of May, active listings reached 13,599—up 13.67 percent from April and a striking 48.48 percent higher than the same time last year. This marks the highest inventory level Denver has seen since 2011. While we’re still slightly under the long-term May average of 14,510 listings, the gap is closing quickly. To put it in perspective, April 2006 set the record with 30,457 listings, while 2021 hit a record low with just 2,075. More homes coming to market is good news overall, but it underscores the need for both buyers and sellers to approach this landscape with clarity, intention, and staying power.
Still, inventory alone doesn’t tell the whole story. Market direction is driven by the balance between supply and demand. Pending sales—an early indicator of buyer activity—dropped in April, but May brought a resurgence with pending contracts up 6.88 percent month-over-month. Prices have held firm. The median sale price rose slightly in May: detached homes increased by 0.76 percent and attached homes by a more notable 4.52 percent. Homes are still moving—especially the ones that check all the right boxes. In fact, detached homes spent just 16 days in the MLS before selling, and attached homes averaged 28. Yet active listings are trending closer to 45 days, signaling a growing divide between turnkey and not-quite-ready properties.
Multiple offers haven’t disappeared, but they’ve normalized—closer to list price and fewer in number. Mortgage rates have remained relatively steady, moving within a narrow 0.2 percent band in May, and consumer confidence ticked upward. A new Realtor.com survey showed that 23 percent of Millennials plan to buy this spring, up from 15 percent in the fall. Add in growing incomes and more accessible lending, and the market is quietly leaning toward more affordability.
As always, real estate remains hyperlocal. Every home sale is shaped by its specific location, condition, and the needs of the people involved. The key in this market is finding alignment—matching personal goals with real-time market dynamics. It’s about striking the right balance between patience and action, between strategy and flexibility. In times of change, staying grounded in your “why” while being open to a different “how” is what drives successful outcomes.
For Sellers
With inventory growing, buyers have more choices—and they’re using them. Homes in desirable areas that are priced correctly and well-prepared can still sell quickly. But those that miss the mark on condition or price may sit longer and require reductions to attract attention. Presentation, price, and preparation are more important than ever. Focus on what you can control. Denver’s rising inventory also means more negotiation. Redfin reports that 59.2 percent of Denver home sales in Q1 2025 included a seller concession. In this market, meeting buyers where they are isn’t weakness—it’s strategy.
For Buyers
You wouldn’t know it from the headlines, but affordability is improving. Mortgage rates may be holding steady, but incomes are climbing. Wages rose 4.3 percent year-over-year in April, and personal income jumped 0.8 percent that same month—the biggest monthly gain since May 2021. That’s real growth that helps offset the cost of borrowing. More inventory means more negotiating power and more time to make the right decision. The market is shifting in ways that benefit prepared, informed buyers. If you’ve been waiting for space to act, now could be your moment.
This moment isn’t defined by a sudden surge—it’s a gradual shift. And with that shift comes room: room to reflect, plan, and prepare. For action that aligns with where you are and where you want to go. Whether you’re buying, selling, or still deciding, the most important move is the next one that’s right for you.
*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors of omission in the content.