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Tis the season… for slowing down

Especially in Denver real estate!

As the holiday season settles into colder days and festive evenings, the Denver Metro housing market follows a familiar and time-tested pattern. Historically, the final quarter of the year brings a noticeable lull: fewer new listings, fewer buyers out touring homes, and many households pausing their real estate plans until after the new year. With gatherings, travel, weather, and long to-do lists competing for attention, it’s no surprise that activity cools long before the temperatures hit their coldest.

Inventory reflects the first signs of this holiday slowdown. Active listings dropped 15.92% month-over-month, reaching 10,506, though still 12.85% higher year-over-year. For additional perspective, the average number of active listings for November from 1985–2024 is 13,416, with a record high of 27,530 in 2006 and a record low of 2,248 in 2021. Today’s inventory sits comfortably between those extremes, underscoring a market that continues to normalize rather than constrict. Meanwhile, new listings fell 41.39% month-over-month—one of the sharpest seasonal declines of the year. This aligns with typical holiday seller behavior: many homeowners temporarily withdraw their listings in November and December, and those with greater timeline flexibility often pause plans altogether until after the new year, when buyers reemerge and activity naturally increases.

Homes also took longer to sell, with median days in the MLS rising to 36—up 9% from October and 26% year-over-year. Detached homes averaged 56 days and attached homes averaged 67. While longer timelines may feel unusual after the frenzied pace of recent years, they reflect a return to a healthier baseline. This was the year the market re-learned what “typical” looks like. After the intensity of bidding wars, waived contingencies, and double-digit appreciation, 2025 brought back the fundamentals: negotiation, steadier timelines, and modest price movement. A home sitting for a month isn’t a red flag—it’s a sign of balance. And buyers negotiating concessions aren’t exploiting weakness; they’re simply participating in a normal, functioning market. Looking toward 2026, those who embrace this balance will be best positioned for success, while those waiting for dramatic extremes—whether a surge or a crash—may find themselves stuck on the sidelines.

Sales activity softened alongside the season. Pending sales fell 11.05% month-over-month, while closed sales dropped 23.37%, mirroring historic holiday slowdowns as travel, weather, and end-of-year demands divert attention away from housing. Yet pending sales remained up 2.45% year-over-year, suggesting a steady foundation of buyer demand even during quieter months.