October 28, 2026 | Denver Real Estate Market Update
It’s one of the questions I’m hearing most frequently from prospective homebuyers: Should I buy now, or would I be better off waiting until next year?
It’s a reasonable question. Mortgage rates remain elevated, economic uncertainty continues to influence consumer confidence, and many buyers are wondering whether home prices or borrowing costs might improve in 2027.
But there’s another side to the equation. While today’s market presents affordability challenges, it also offers something buyers haven’t enjoyed consistently in recent years: negotiating power.
The answer to whether you should buy now or wait depends on more than where mortgage rates might go next.
Mortgage Rates Are Only Part of the Equation
As of October 22, the average 30-year fixed mortgage rate stood at 7.32%, according to Freddie Mac. That’s substantially higher than the 6.19% average recorded a year earlier.
Higher rates have reduced purchasing power and caused many prospective buyers to postpone their plans. Some are hoping the Federal Reserve will lower interest rates, although it’s important to understand that the Fed does not directly control mortgage rates.
Mortgage rates are more closely tied to long-term Treasury yields, inflation expectations, and mortgage-backed securities markets. Even if the Fed lowers its benchmark rate, there’s no guarantee mortgage rates will follow.
Waiting for lower mortgage rates is therefore a strategy built around an uncertain outcome.
Denver Buyers Have More Negotiating Power
The Denver housing market has changed considerably from the intensely competitive environment buyers experienced just a few years ago.
According to the Colorado Association of REALTORS®, September home sales in the seven-county Denver metro area declined nearly 19% compared with the previous year, while median home prices were down approximately 1.7%.
Perhaps more telling, nearly 49% of September transactions involved a reduction from the original asking price, and approximately 64% included seller concessions. Roughly 80% involved one or both.
These figures illustrate an important shift: Many sellers are willing to negotiate in ways they might not have considered during a stronger market.
For buyers, that can mean opportunities to negotiate the purchase price, request repairs, obtain closing-cost assistance, or secure seller-funded mortgage rate buydowns.
What Happens If You Wait?
There are legitimate reasons to wait. Mortgage rates could decline, home prices could soften further, or your personal financial circumstances might improve.
But waiting also carries risks.
If mortgage rates decline meaningfully, more buyers could return to the market. Increased competition could reduce negotiating leverage, particularly for well-priced homes in desirable neighborhoods.
There’s also the question of inventory. Spring typically brings more homes to the market, giving buyers additional choices. But it also brings more competition.
In other words, waiting could mean a better mortgage rate and more homes to choose from, but potentially less flexibility when negotiating with sellers.
None of those outcomes is guaranteed.
Consider the Total Cost, Not Just the Interest Rate
Here’s a hypothetical example.
Suppose you’re considering a $700,000 home with 20% down, financing $560,000.
At a 7.25% interest rate, the monthly principal and interest payment would be approximately $3,820.
If mortgage rates declined to 6.50%, that payment would fall to approximately $3,540, a savings of about $280 per month.
That’s meaningful. But what if waiting also means paying more for the home, losing an opportunity to negotiate a price reduction, or no longer receiving seller concessions?
Conversely, if home prices fall and rates improve, waiting could put you in a stronger financial position.
That’s why I encourage buyers to evaluate the entire transaction rather than focusing exclusively on mortgage rates.
When Buying Now Makes Sense
For buyers who have stable employment, adequate savings, and a plan to remain in the home for several years, the current market may present attractive opportunities.
You may have more time to evaluate properties, greater leverage during negotiations, and access to seller concessions that can help offset today’s borrowing costs.
And while refinancing could become an option if mortgage rates decline in the future, buyers should never rely on that possibility to make an unaffordable purchase work today.
When Waiting Makes More Sense
There are also circumstances where waiting is the smarter decision.
If today’s monthly payment stretches your budget, your employment situation is uncertain, you anticipate a major life change, or you’re unsure how long you’ll remain in the property, there is little reason to rush.
Similarly, if you’re searching for a very specific property and nothing currently available meets your needs, patience may be appropriate.
A home purchase should support your financial goals, not create unnecessary pressure.
My Advice: Don’t Try to Predict the Perfect Market
After years of helping buyers and sellers navigate Denver real estate, one thing remains consistent: It’s extraordinarily difficult to identify the perfect moment to enter the market.
Mortgage rates, inventory, prices, and buyer competition are constantly changing. Trying to predict all four simultaneously is rarely a successful strategy.
Instead, I encourage buyers to focus on three questions:
- Can I comfortably afford the monthly payment today?
- Am I purchasing a home that meets my long-term needs?
- Can I negotiate terms that make the purchase financially attractive?
If the answer to all three is yes, buying now may make sense, even with elevated mortgage rates.
If not, waiting is a perfectly reasonable decision.
The Bottom Line
The Denver market is offering buyers something valuable right now: leverage.
That doesn’t necessarily mean prices have reached their lowest point or that mortgage rates are about to improve. It means buyers have opportunities to negotiate that may become less common if market conditions strengthen.
The best time to buy isn’t necessarily when interest rates are lowest. It’s when the right property, the right financial circumstances, and the right negotiating opportunity come together.
If you’re considering buying a home in Denver, whether this fall or sometime in 2027, I’d welcome the opportunity to help you evaluate both options and develop a strategy based on your goals.
About Justin Joseph
Justin Joseph is an award-winning Denver real estate broker with LIV Sotheby’s International Realty, recognized by RealTrends Verified in 2026 as the No. 18 real estate broker in Denver by sales volume. With approximately $35 million in annual sales, Justin brings a distinctive combination of market expertise, strategic negotiation, and legal experience to every transaction. A licensed attorney, former Senior Deputy District Attorney, and Emmy Award-winning investigative journalist, he approaches real estate with an analytical perspective and a commitment to protecting his clients’ interests. Known for his sophisticated marketing strategies, data-driven pricing recommendations, and personalized service, Justin helps buyers and sellers navigate the Denver real estate market with confidence.