Colorado real estate report for May: High inventory, low sales

Despite the significant increase in inventory levels, which are currently at their highest statewide in Colorado since 2019, home sales are stagnant due to high interest rates that buyers are struggling with.

Despite the challenging market conditions, sellers are still listing their homes, as they anticipate that interest rates are not likely to decrease in the near future.

According to the latest market trends housing report from the Colorado Association of Realtors, buyers who have been waiting for more options for years are either negotiating concessions and buy-downs or opting to wait on the sidelines.

Reflecting on the current market conditions, Aurora-area realtor Sunny Banka mentioned, “The past five years have made us hopeful for a more balanced or buyer-friendly market, and it seems that time has finally arrived.”

In May, Colorado recorded 31,268 active listings, marking a 27% increase from May 2024. While sold listings statewide decreased by 1.8% compared to last year, pending or under contract sales saw an 11% increase.

Broker associate Cooper Thayer from the Thayer Group in Castle Rock highlighted that higher costs are leading to homes staying on the market for longer periods, creating an accumulation of inventory.

Thayer pointed out, “This has resulted in a significant 4.2 months’ supply of inventory, setting a near-15-year record high.”

He further added, “It seems that we have entered a genuine buyer’s market after many years, giving homebuyers the advantage in negotiations.”

Thayer advised that buyers who can manage the increased costs associated with home purchases can benefit from the current market conditions.

Despite the challenges faced by sellers, Thayer mentioned that prices have remained steady, inventory is still moving (albeit slower), and there is still strong demand from prospective homebuyers in the Denver metro area.

Statewide, the median price of single-family homes dropped by 1.5% to $590,000 from April to May, and it is also down 1.2% from the previous year. On the other hand, condo and townhome median pricing increased by 3.3% to $420,000 from April to May, returning to the same level as the previous year.

Real estate agent Kelly Moye of Compass likened the current market situation to running on a treadmill – active but not making significant progress.

Realtor Julia Purrington Paluck from Evergreen noted that the mountain metro market is currently experiencing its highest inventory levels in a decade.

She mentioned, “As of the end of May 2025, we’re seeing the highest number of active listings in over ten years, with about 36% more homes on the market compared to May 2024 and more than double compared to May 2023.”

Despite the surge in inventory, demand remains low, with many buyers hesitant to give up their lower mortgage rates for higher ones.

Paluck suggested that this imbalance between supply and demand may lead to price adjustments in the near future.

This post was prepared without any involvement from the news and editorial teams at JS.