Denver’s Housing Market Has Shifted – Here’s What Homeowners Need to Know
If you’ve been watching the housing market in Denver, you may have noticed the tone shifting. Once considered one of the hottest real‐estate markets in the country, the Mile High City is now facing significant headwinds. According to new data from Zillow, approximately 91% of homes in the Denver metro area lost value over the past year — the highest share of any major U.S. metro.
What’s happening
Several interlocking factors are driving this shift:
Affordability pressures and high interest rates are suppressing demand. As Zillow notes, weaker buyer power is weighing on values. Denver 7 Colorado News (KMGH)
Inventory is building up. More homes on the market means buyers have more choices and sellers have less leverage. Colorado Association of REALTORS+1
The share of homes losing value in Denver far outpaces the national average (53%). CBS News+1
Why this especially matters now
For homeowners, a declining market changes the dynamic:
Even if you aren’t selling now, diminishing home equity means you have less cushion if you need to move, refinance, or tap your equity.
For sellers, pricing and positioning matter more than ever. A home that isn’t “move-in ready” or priced with flexibility may sit much longer. According to the local market report, average sales prices are only slightly down in some segments, but homes needing work are staying on the market longer. Colorado Association of REALTORS
For buyers, the balance of power is shifting toward you. More negotiation leverage, more inventory, less competition — provided you’re ready and can navigate the interest‐rate environment.
What you should do if you’re currently holding a home in the Denver market
Review your mortgage structure and equity position. If your home has lost value or you feel “stuck,” it may be time to evaluate your options.
Don’t assume you’ll get last year’s pricing. Sellers who expect pandemic or post-pandemic pricing are often surprised. As one Denver resident noted: “If you’re expecting last year’s market … you are going to be severely surprised and possibly quite disappointed.” CBS News
Consider timing and strategy if you plan to sell. Because the market favors buyers right now, listing in an optimally prepared way—strong condition, correct pricing, clean presentation—can make a difference. Homes needing work may have to bring price reductions or incentives. Colorado Association of REALTORS
If you’re a buyer, you may find opportunity. Lower competition + more inventory = better negotiation opportunity. That said, interest rates still matter and some properties may carry hidden costs (HOA, insurance, etc) given market conditions.
For both sides, keep the long view. Real-estate markets move in cycles. While Denver is having a difficult year in many segments, conditions will shift—mortgage rates, inventory, job growth all matter.
How this ties into what we do at The Home Loan Arranger
As someone who helps homeowners evaluate their mortgage and refinance strategy, now is a prime time to reassess:
If you bought years ago and locked in a low rate, you might have built substantial equity—good position.
If you purchased recently at high rates or feel vulnerable because of the value decline, it’s time to look at your mortgage options, including cash-out, rate reduction or terms improvement.
Understanding local market conditions helps you make smarter decisions—whether staying put, moving, or refinancing.
Bottom line
Denver’s housing market is no longer the runaway winner it once was. With the highest share of homes losing value among major metros, the momentum has shifted. That means realism, preparation and strategy are more important than ever. Whether you’re buying, selling or refinancing, working with a mortgage professional who understands these changing dynamics — and can guide you through your options — is key.
If you’d like a free consultation on how your home’s equity, mortgage rate and market conditions line up, I’m here to help.
Jason Michael Ruedy – The Home Loan Arranger
📞 303-862-4742
🌐 TheHomeLoanArranger.com
