As we navigate the end of 2025 and look ahead, the number one question I get from my clients is: "What's really going on with the Colorado real estate market?" It's a complex picture, and in a market defined by higher interest rates and stabilizing inventory, having a data-driven strategy is more important than ever.
Generic national headlines don't tell the whole story. That's why I rely on specialized, hyper-local data to guide my clients. I'm constantly analyzing the trends that will shape our market here in Colorado.
To that end, I wanted to share some key insights from a comprehensive new forecast that aligns with what I'm seeing on the ground. The predictive analytics team at TimeToSell.AI, a platform I use to gain a competitive edge for my clients, recently published their "2026 Colorado Housing Market Outlook." It's a must-read for anyone considering a move.
Key Prediction: A Market of Normalization
Colorado enters 2026 with a market defined by normalization—not a rewind to the 3% era. Our base case assumes mortgage rates glide toward the low–mid 6s while the “lock-in” effect gradually loosens where life events and affordability improvements intersect. Listing supply should improve modestly, driven by specific seller groups, while price growth remains measured and hyper-local.
Who Will Actually Move in 2026?
Churn won’t “snap back” uniformly. We expect the following relative contributions to 2026 listings:
- ≥4% mortgage holders: Largest incremental share of new listings as the payment delta narrows.
- Free-and-clear owners: Steady, life-event-led supply (downsizing, relocation, estates).
- <4% mortgage holders: Remain sticky; they list when life events (divorce, health, inheritance) or cost shocks dominate.
This data-driven perspective is crucial. It confirms that the sellers who will be successful in 2026 are those with a non-discretionary need to move and a realistic pricing strategy. For buyers, it signals that while the frenzy is over, affordability remains key.
This is just a small sample of the full report. I highly recommend reading the entire analysis to understand the detailed predictions for Denver, Colorado Springs, and Northern Colorado.
Click here to read the full 2026 Colorado Housing Market Outlook on TimeToSell.AI »