What the Forecasts Actually Say About Denver Housing in 2027

Will Denver home prices drop in 2027? Here's what the Federal Reserve, Fannie Mae, and the latest Denver market numbers actually say, without the hype.

Every fall, the same question shows up in my inbox and in search results: what's going to happen to Denver home prices next year?

I'll be honest with you up front. Nobody knows for sure, and anyone who gives you an exact number for Denver in 2027 is guessing. What we can do is look at the official forecasts and the local numbers, and see what they point to. That's what this post is about.

Where the Denver market stands right now

The Denver Metro Association of Realtors (DMAR) publishes a monthly Market Trends Report using data from REcolorado. Here's the October snapshot for the metro area:

• Median closed price: $595,000, up 3.48% from September and up 0.85% from last October
• Active listings: 12,978, down 4.34% from September but 3.87% more than a year ago
• Homes that closed: 2,748, the fewest of any October since 2010
• Months of inventory: 4.72

In plain terms: prices are holding steady, not falling. What's changed is the number of sales. Fewer homes are closing, buyers have more homes to choose from than a year ago, and sellers are giving more help. In October, 65% of homes that sold involved a seller concession, and the average concession was $12,557.

Single-family homes and condos are telling different stories, though. Single-family homes had a median price of $645,000 and sold in a median of 26 days. Condos and townhomes had a median of $375,000, down 3.25% from last October, took a median of 48 days to sell, and have more than seven months of supply. That's a cooler market, especially for condos and townhomes. It is not the same thing as a crash.

What the Federal Reserve expects

The Fed doesn't set mortgage rates directly, but its decisions shape them. In September, Fed officials released their latest projections. The median outlook puts the federal funds rate at 4.1% at the end of 2026 and 4.1% at the end of 2027. Back in June, that same 2027 projection was 3.6%.

In other words, the Fed's own forecast doesn't show rates coming down next year. Officials also expect inflation to ease from 3.7% this year to 2.3% in 2027. If inflation cools faster than that, the picture could change. But if you're waiting on a big rate drop before you buy, know that the Fed isn't projecting one right now.

What Fannie Mae expects

Fannie Mae's economists publish a housing forecast every month. Their October forecast, released in mid-October, made some notable changes:

• 30-year fixed mortgage rates averaging 7.5% throughout 2027, up from the 6.7% they projected in September
• National home price growth of 0.6% in 2027, down from 1%
• Existing-home sales of about 4.06 million nationwide in 2027, down from 4.22 million

These are national numbers, not Denver numbers. Denver has its own supply and demand story. Still, they tell you the direction most economists are leaning: slow, flat-ish prices and rates that stay elevated.

So, will Denver prices drop in 2027?

Here's my honest read of the data, not a prediction:

1. No official source publishes a Denver price forecast for 2027. National forecasts point to roughly flat prices.
2. Denver has more homes for sale than it did a year ago. More choices usually means less pressure on prices, especially for condos and townhomes.
3. Rates are the wild card. A real drop in mortgage rates would bring buyers back quickly. Rates staying high would keep things slow.
4. Every segment is different. A well-priced single-family home in a high-demand area can behave very differently than a condo with high HOA dues across town.

What this means for you

If you're buying: Waiting for a perfect rate or a bottom in prices is a bet, not a plan. The better question is whether the monthly payment works for your budget today and whether you plan to stay a while. Today's market also gives you room to ask for inspection repairs, seller credits, or a rate buydown.

If you're selling: Pricing right from day one matters more now than it has in years. Buyers are comparing your home to a lot of others, so condition and presentation make a real difference.

If you're just watching: That's fine too. Follow the monthly numbers, not the headlines. I'll keep sharing them here.

Have a question about your situation?

Forecasts are about the whole country or the whole metro. Your situation is about one home, one budget, and one timeline. If you're trying to figure out what any of this means for you, send me your question. I'm happy to walk through it with you, no pressure.

Sources: Federal Reserve, Summary of Economic Projections, Sept. 16, 2026 · Fannie Mae October 2026 housing forecast, via Florida Realtors · Fannie Mae housing forecast PDF · DMAR Market Trends Report, October 2026 (data from REcolorado)