Even though the title states this is our 2026 May Denver Market Update, it feels more like November or December. This is not because of the winter storm we are just coming out of but also the market conditions.

Historically, by May, Denver is well into its spring market, with both homebuyers and sellers actively joining the market—often seeing a higher number of listings and more homes going under contract. Early spring was following this trend. In fact, according to Denver Metro Association of Realtors® (DMAR), Denver home values rose over 6% year to date. However, it’s important to remember that the homes reflected in this statistic likely went under contract in late February or early March and closed before this article was written. This is important because I believe the current market conditions will paint a very different story than when these homes went under contract. If you’re following the timeline, it’s no surprise that I am referring to the war on Iran.

Since early April, the market has taken a different turn and is now heading a different direction than it was the first quarter of 2026. Not everyone has left the Denver real estate market—sellers are still showing up and putting their homes on the market. On average, we’re still seeing between 1800 and 2400 new homes on the market each week. These numbers are right where we’d normally expect them to be this time of year. However, what we’re not seeing is as many buyers enter the market. This is causing inventory levels to rise and homes to sit on the market longer than they were even just last month.

On the surface, this might sound like a real estate crash or that the bottom is falling out of the Denver real estate market. However, if you pull back and look at the bigger picture, that’s just not the case. In fact, home values were higher at the beginning of April than they were at the start of the year. So even if we see a pull back at the beginning of the summer, values are still going to remain close to what they were at the beginning of the year, which is hardly a bubble bursting scenario. It’s also important to remember there is a specific event taking place in the global economy that is putting the downward pressure on the local market. Because of the war in Iran, many buyers have pulled back and put a pause on their buying journey. It is likely to be just a temporary pause as they wait to see what will happen with the war and its long-term effects on the global and local economy. Just like higher interest rates, buyers will take some time to adjust to new market conditions and then re-enter the market either when the conflict is resolved or they get comfortable with the potential long-term effects of the war. This will not be a permanent pull back and could cause pent-up demand once buyers become more comfortable with the long-term effects from the war or if the war concludes.

This means that there could be a window of opportunity for buyers willing to take advantage of today’s softer Denver market conditions. Buyers today can potentially get into a home for a little lower price, be able to negotiate seller concessions to help with rate buydowns or closing costs and get more items addressed during inspections. Buyers who purchase now, before the masses get comfortable with the new market conditions or the war concludes, could beat the pent-up demand and enjoy appreciation versus paying for it.

For sellers, it’s also important to mention that even with more competition and buyers pulling back, we’re still seeing homes go under contract daily and even in some cases homes getting multiple offers. Denver home sellers in today’s market will really need to understand the importance of pricing their homes correctly and what they can do to improve how their home shows to attract the right buyer and get under contract. Sellers should also be open to negotiating a seller concession to help buyers with rate buydowns and closing costs. With the right selling strategy, Denver homeowners are still able to sell their homes and likely for an amount similar to what they could have sold for at the beginning of the year.

Denver’s real estate market might be pulling back some, but that doesn’t mean we are at TK Homes. We are continuing to provide a 5-star experience to Denver homebuyers and sellers looking to make a move in 2026. Contact us today and let’s talk more about the market and your goals, then let’s create a strategy to help you make your Denver real estate goals a reality!

~ Written by CEO/REALTOR® Trevor Kohlhepp