Where the market actually stands
The median home price across Metro Denver is holding around $585,000, and it's expected to stay roughly there through the rest of the year. Mortgage rates have leveled off too, with the 30-year fixed averaging 6.67% as of mid-August. Neither number is falling fast, but neither is it spiking, which is its own kind of relief after the past few years.
The bigger shift is leverage. Closed sales are down sharply and homes are sitting longer, on average 36 days before going under contract. That means less pressure to waive everything and hope for the best, and more room to actually negotiate, ask for repairs, and take a breath before signing. As DMAR's Amanda Snitcker put it, there's a lot of pent-up buyer demand from people who've been waiting years to make a move. If that's you, this is a more forgiving window than 2021 ever was.
One cost worth planning for early: homeowners insurance. Colorado's average annual premium is now around $4,100, up 137% over the past decade. Get a quote before you fall in love with a house, not after — it can meaningfully change what you can actually afford.
Money you might not know you can get
First-time buyers in Denver have more down payment help available than most people realize, and "first-time" is more generous than it sounds: if you haven't owned a home in the last three years, you qualify.
- CHFA Down Payment Assistance Grant — up to 3% of your first mortgage, no repayment required. On a $400,000 loan, that's roughly $12,000 toward your down payment or closing costs.
- CHFA Second Mortgage Loan — up to 4% (or up to $25,000 regardless of loan size if you're a first-generation buyer or have a permanent disability), with repayment deferred until you sell, refinance, or pay off the first mortgage.
- MetroDPA — up to 5% as a forgivable second mortgage once you've lived in the home three years, for buyers under roughly $176,700 in household income.
- Denver Affordable Housing — deed-restricted homes priced below market for buyers within specific income bands, with caps on future appreciation in exchange for the lower price now.
Most of these require a HUD-approved homebuyer education course, which sounds like a hurdle but is usually a few hours online. Talk to a CHFA-participating lender early so you know which combination actually applies to you — stacking a grant with a local program is common, and it can change your price range by tens of thousands of dollars.
Earnest money: what it protects, what it risks
Earnest money in Denver typically runs 1–2% of the purchase price, sometimes up to 5% in a competitive multiple-offer situation, and it's usually due to the title company within one to three business days of an accepted contract. Think of it as a deposit that shows you're serious, not a fee — if you terminate the contract within your inspection, appraisal, financing, or title deadlines, it comes back to you. Miss a deadline or back out for a reason the contract doesn't cover, and the seller can potentially keep it. Read your deadlines the day you go under contract, not the week they're due.
The inspection period is your safety net — use it
Colorado's standard inspection period runs 7–14 days from acceptance, and it's the best tool you have as a buyer to actually see what you're getting. Hire your own inspector (budget $300–$500, more like $700–$1,000 with radon or sewer scope added), and show up for at least the last hour if you can — you'll learn more standing next to the inspector than reading the report alone.
Don't skip the sewer scope on an older home. It's a $200 test that can catch a problem costing $8,500 or more to fix. Once you have the report, you have until the objection deadline to request repairs or a credit in writing — a phone call doesn't count. The seller then has roughly a day to respond before you both know where you stand.
Get pre-approved before you tour, not after
This one's simple but it's where I see people lose ground: a pre-approval letter isn't a formality, it's your ticket to actually make an offer the day you find the right house. In a market with more room to negotiate, you still want to move fast on the homes that are genuinely good — those still go quickly. Talk to a lender before your first showing, not after your third.
First-time buyer or not, you don't have to figure this out alone. If you want to talk through what fits your situation, I'm happy to walk through it with you.
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