Since the start of 2025, for-sale inventory has been on the rise across the Denver Metro area. According to Realtor.com, for-sale inventory has reached 12,354 active listings, a figure that is far and away the most active listings in the past decade. It isn't atypical for active listings to sprout up during the summer months, with 2024 showing high numbers as well. Looking all the way back to July of 2019, which was right in the middle of a major buying market, the active listings in the Denver metro were at 8,892. May 2025 surpassed those numbers by nearly 40%, with still more months and greater inventory on the horizon as the summer carries on. What does this mean for home prices, and how can buyers take advantage of this market?

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The Big Picture: A Market in Transition

The Denver real estate landscape is undergoing its most significant shift in over a decade. After years of a frantic seller's market defined by scarce inventory and fierce bidding wars, the tables are turning. The surge in active listings, which began picking up steam in the spring, has pushed the number of homes on the market to levels not seen since 2011.

To put this in perspective, the average number of active listings over the past decade has hovered around 5,673. The current figure of 12,354 is more than double that average, signaling a clear and decisive move away from the extreme scarcity that defined the post-pandemic market. This isn't just a typical seasonal increase; it's a fundamental change in market dynamics.

What Is Driving the Surge in Inventory?

Several factors are contributing to this "unprecedented" spike in homes for sale. For years, demand in Denver has been incredibly high, fueled by a strong job market and an influx of new residents. However, sustained high prices combined with elevated mortgage rates have tempered that demand. At the same time, more sellers are deciding to list their homes, potentially due to life changes, economic concerns, or a sense that the market has peaked. This combination of cooling demand and rising seller activity is rapidly filling the once-empty shelves of the housing market.

What This Means For Home Prices

The most immediate consequence of soaring inventory is a correction in home prices. Basic economics dictates that when supply outpaces demand, prices tend to fall. Experts are already seeing this play out in the Denver market.

According to analysis from real estate data firm Reventure App, the rapid increase in supply is putting significant downward pressure on values, with forecasts suggesting a potential 9.1% drop in Denver home prices over the next year.

This doesn't mean a market crash is imminent. Rather, it signifies a return to a more balanced and sustainable market. Sellers are increasingly having to adjust their expectations, with price cuts becoming more common to attract discerning buyers. While single-family homes have shown more price resilience, the market for condos and townhomes has seen more significant softening.

How Buyers Can Take Advantage of This Market

For homebuyers who have been sidelined by the intense competition of the last few years, this shift is a welcome opportunity. Here are four key ways buyers can take advantage of the changing market:

1. You Have More Choices and More Time: The most obvious advantage is the power of choice. With inventory more than doubling from the decade average, you can afford to be more selective. The days of having to make a snap decision on a home within hours of it being listed are fading. You now have more time to tour properties, compare options, and make a decision that feels right for you, not one dictated by scarcity.
2. Negotiation Power is Back: In a high-inventory market, sellers are more willing to negotiate, which is where you can leverage the power of a site like Shishito to control your offer and save even more money. This goes beyond just the final sale price. Buyers are finding success in asking for seller concessions to help cover closing costs or to "buy down" their mortgage interest rate. Furthermore, inspection objections are carrying more weight. You can more confidently ask for repairs on issues uncovered during an inspection without the fear that the seller will simply move on to a dozen other offers.
3. Get Pre-Approved and Know Your Budget: While the market is cooling, it's still competitive for well-priced, desirable homes. Before you begin your search, it is crucial to get pre-approved for a mortgage. This shows sellers you are a serious, qualified buyer and gives you a firm understanding of your budget. In a market with fluctuating prices and rates, knowing exactly what you can afford is your most powerful tool.
4. Don't Skip Your Due Diligence: The pressure to waive contingencies to win a bidding war has evaporated. Take full advantage of this by conducting a thorough home inspection. With more leverage on your side, you can use the inspection report to negotiate repairs or a lower price, protecting your investment in the long run. Pay close attention to big-ticket items like the roof, HVAC system, and foundation.

In conclusion, the rise in Denver's housing inventory marks the beginning of a new chapter for the region's real estate market. While sellers need to adjust to the new reality, it's a breath of fresh air for buyers, offering them more choice, less pressure, and a real opportunity to find a home that fits their needs and budget.