Colorado housing inventory rises as spring selling season begins

After years of tight supply and fierce competition, buyers are finding more options, potentially signaling a change in market dynamics.

Statewide, new listings were up 23.7% in March compared to a year ago, according to the latest Market Trends Housing Report from the Colorado Association of Realtors.

In the seven-county Denver metro area, listings were up nearly 30% compared to last year, although sales remained about the same.

“There are a lot more options for buyers,” said Cooper Thayer, a realtor with Denver-based Thayer Group. “You’ve got time as a buyer, and buyers aren’t feeling like they need to be rushed into things.”

While homes are selling faster than they were in February, the overall pace has slowed from a year ago. Statewide, single-family homes were on the market for an average of 64 days — up 12.3% from a year ago. Condos and townhomes were on the market an average of 66 days, up nearly 14% from the 50-day average last March.

In metro Denver, single-family homes and condo-townhomes were on the market an average of 54 days, up more than 20% from March 2024. Single-family homes were on the market for an average of 33 days, while condos averaged 37 days.

“You really have a tale of two markets,” Thayer said. “There’s a big difference in the performance of single-family detached homes — condos and townhouses are significantly slower and in lower demand.”

Dana Cottrell, a realtor in Summit County, said that with the end of ski season looming, renters are moving out and listings are up 47% compared to last March. Homes priced from $300,000 to $600,000 are up 183% — likely because homeownership costs such as insurance and homeowners’ association fees have spiked and short-term rentals are prohibited in much of Summit County.

Another factor is that a new state law requires landlords to have a valid reason or “cause” to evict tenants.

“I’m getting more listings from people who weren’t even doing short-term rentals,” Cottrell said. “Just-cause evictions laws are scary to them. They’re worried that if they get a renter in, they’ll never get them out and have to default on the property because they can’t afford three months of someone not paying.”

Even with the surge in inventory, prices rose 10.4% compared to last year, and sales were up 11%.

“As we get into summer, we’re going to have more listings,” Cottrell said. “The question is: Will the buyers show up? There are some things people might not feel so secure about.”