As published in DMAR Market Trends, May 2026

Sellers are finding it difficult to accept concessions and buyers’ inspection requests, but without these incentives, buyers often move on to properties that are better prepared for today’s market.

”Coming Soon” listings continue to gain popularity and can be especially effective around holiday weekends such as Memorial Day, Fourth of July and Labor Day. With buyer activity often slowing during these periods, a strategic “Coming Soon” campaign can build anticipation, increase exposure and create stronger momentum when a property officially hits the market.

Listings with solar leases attached may face additional challenges attracting buyers who are already stretched financially. Sellers with an outstanding solar lease balance should consider paying it off before listing or at closing using sale proceeds.

Showing feedback has become increasingly scarce across the Denver Metro area. Providing a simple indication of interest carries no legal liability for buyers, and timely communication remains an important part of a professional transaction. This growing issue warrants industry attention.

Many sellers are hesitant to accept data that challenges expectations for a quick sale at a premium price. Understanding the difference between property tax assessments and fair market value is critical to setting expectations and pricing a home appropriately.

Denver City Council approved updates to the city’s prevailing wage ordinance requiring developers of taxpayer-funded affordable housing projects to pay regional prevailing wages, even on projects built on private land. Supporters say the policy helps workers afford to live in the communities they build, while critics warn it could impact affordable housing production.

Denver has overtaken Tampa as the U.S. housing market with the fastest-declining home values, according to the latest S&P CoreLogic Case-Shiller Index. Denver prices fell 2.2% year-over-year in February, signaling continued market softening that is expanding beyond the Florida Sunbelt into other major metro areas.

Denver’s seasonal watering restrictions took effect in March, limiting homeowners to watering two days a week and prohibiting midday sprinkler use. In May, the city launched a public reporting portal that generated more than 800 violation reports in less than four weeks, highlighting increased enforcement efforts amid ongoing water conservation concerns.

The Colorado Economic Development Commission approved a $5 million grant to support infrastructure upgrades around Broncos’ proposed Burnham Yard development, a project expected to spur significant redevelopment and economic activity in the area.

Three Colorado quantum companies received a combined $300 million in federal funding, reinforcing the state’s growing position as a national hub for advanced technology and innovation.

 Foreclosure-related conversations on the Colorado Housing Connects hotline have increased nearly 50% since last year, indicating that homeowners who purchased at the peak of the market are experiencing financial strain and seeking assistance.

Colorado’s unemployment rate remained unchanged at 3.9%, while the labor force participation rate held at 66.1%, well above the national average of 61.8%. A strong labor market continues to support housing demand and reinforces Colorado’s appeal to both workers and employers.

Zillow filed an antitrust lawsuit against Compass and Chicago-area MLS MRED, alleging they conspired to restrict Zillow’s access to listings and harm consumers. The lawsuit specifically challenges Compass’ private and pre-marketed listing strategy, along with its partnership with MRED for listing distribution. The case highlights the ongoing industry debate over private listings and could significantly impact how homes are marketed and shared across real estate platforms nationwide.

Fix-and-flip investors are buying homes more conservatively as the market moves through the second half of the year. Seasonal slowing heading into Q3 and Q4, combined with elevated interest rates, is prompting investors to underwrite deals more cautiously and account for the possibility of lower prices compared to peak summer values.

An analysis of 40 markets by Homes.com suggests the anticipated “silver tsunami” of Baby Boomer home sales is unlikely to affect every market equally. Faster-growing cities like Denver and Austin are more likely to absorb the inventory surge, while slower-growth Rust Belt markets may face oversupply. Meanwhile, the nation’s most unaffordable housing markets are unlikely to see enough inventory relief to meaningfully impact home prices.

MORTGAGE NEWS

Thirty-year mortgage rates are hovering around the mid-six percent range, significantly below the peaks of 2023 but still well above what many homeowners are accustomed to. Rate volatility continues to influence buyer behavior and seller decisions.

Inflation remains elevated enough that the market is watching the Federal Reserve closely. Most analysts expect rates to remain higher than pre-pandemic norms, making financing costs a central issue for housing throughout 2026.