Mile High Home Group – Welcome to Denver

This guide is part of our complete Denver Real Estate Guide → [Denver Real Estate Guide]

Buying a home in Denver today means stepping into a market that has cooled from its peak but remains expensive and competitive by national standards. Median prices sit in the high‑$500,000s, with detached homes in the mid‑$600,000s and condos and townhomes closer to the high‑$300,000s to low‑$400,000s. Inventory is higher than it has been in years, homes are taking longer to sell, and buyers now have meaningful room to negotiate—if they move carefully and understand how Denver’s weather, commute patterns, and housing stock shape long‑term value.​

The steps below walk through a practical, Denver‑specific process from “thinking about it” to closing and moving in, focused only on neighborhoods within the city itself.

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Step 1: Understand Denver’s Market Before You Start

Before you look at a single listing, you need a realistic sense of what “normal” looks like in Denver right now.

Recent data show:

• Metro‑wide median prices hover around $575,000–$599,000, with detached homes around $635,000–$666,000 and attached homes (condos/townhomes) near $390,000–$400,000.​
• Prices are down 2–4% year over year, and roughly 3–5% below 2022’s peak, reflecting a gradual slowdown rather than a crash.​
• Homes in Denver now sell for about 96–98% of original list price and spend 40+ days on market on average, compared with under two weeks during the pandemic peak.​

For a buyer, this means you no longer have to waive every protection or offer on day one—but you still need to be decisive on well‑priced properties in desirable neighborhoods like Washington Park, Congress Park, or Sloan’s Lake.​

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Step 2: Define Budget and Financing With Local Reality

Calculate a realistic price range

In Denver, the affordability pivot is not just the mortgage. You also need to account for:

• Property taxes, typically around 0.5–0.6% of assessed value annually.​
• Homeowners insurance, which has risen meaningfully due to hail, wind, and fire risk across Colorado.​
• Utilities that often run $300–$400/month for a typical home, especially in older housing stock where insulation is weaker.​

As a rough rule, many lenders will cap your total housing payment (principal, interest, taxes, insurance, and HOA) at 28–36% of gross monthly income. If your household income is $150,000, a safe upper bound for total housing cost is usually in the $3,500–$4,500/month range.

Get pre‑approved with a Denver‑savvy lender

Rates have hovered in the 6–7% range in 2025, with modest softening but no return to pandemic lows. Local lenders who work daily with Denver appraisers and underwriters tend to be more realistic about:​

• Historic condo buildings in Capitol Hill or Cheesman Park
• Small, self‑managed HOAs
• Older homes with prior hail or sewer claims

A strong pre‑approval letter sized to Denver prices is also a credibility signal to listing agents in neighborhoods that still see multiple offers on well‑presented homes.

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Step 3: Choose Denver Neighborhoods That Fit How You Live

Within the city, location often matters more than square footage for long‑term value.

Think in terms of commute and daily routes

• If you work downtown or in central Denver, neighborhoods like Capitol Hill, Five Points, and Sloan’s Lake can keep your commute under 20 minutes and reduce your dependence on I‑25.​
• If you work in the Denver Tech Center but want to stay within city limits, parts of University, Platt Park, and Virginia Village offer faster access to I‑25 and light rail.

Shorter, predictable commutes are not just a lifestyle perk; they also reduce wear on your car and make the home more appealing to the next buyer with similar priorities.

Balance housing type with age and maintenance

Denver’s city housing stock breaks down roughly into:

• Older attached units (pre‑war condos and converted mansions) in areas like Capitol Hill and Cheesman Park
• Mid‑century bungalows and ranches in neighborhoods like Park Hill, University, and Harvey Park
• Newer townhomes and infill in RiNo, Five Points, and parts of Sunnyside

Older homes may carry higher ongoing maintenance (roofs, windows, sewer lines), but they also sit on established blocks with proven demand through several market cycles. Newer infill offers modern layouts and energy efficiency but can be more exposed to HOA risk and construction‑quality questions over time.

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Step 4: Start Touring Homes With a Clear Framework

Use data to filter—not to decide for you

Online portals frequently cite:

• A Denver average home value around $525,000–$575,000, down about 4% over the last year.​
• Time‑on‑market and price‑reduction histories by listing

Use those numbers to identify over‑priced or lingering listings—but remember that micro‑location (the exact block, orientation, and condition) can justify meaningful variation even within the same ZIP code.

Evaluate each property through a Denver lens

When you walk a home, think about:

• Roof age and material – Hail is a fact of life along the Front Range, and roofs are among the largest capital items you will face.
• Drainage and grading – Denver’s freeze‑thaw cycles can be hard on foundations; negative grading and chronic pooling around the house are red flags.
• Street plowing and access – On a side‑street in Congress Park, how will you get out after a March upslope storm that drops 12 inches overnight?

These details often matter more than the size of the kitchen island over a 10‑year ownership horizon.

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Step 5: Craft Offers That Reflect a Balanced Market

With inventory up and days on market longer, you have more room to negotiate than in 2021—but the best homes still move quickly.​

Use recent, local comps

DMAR’s zip‑code and quarterly reports show meaningful variation by area, even within the city. For example:​

• Some central neighborhoods are seeing flat or slightly negative year‑over‑year price changes.​
• Premium pockets near parks or strong schools are holding value better.​

Your offer should be grounded in the last 3–6 months of truly comparable sales—same neighborhood, similar age, similar condition—not just city‑wide medians.

Build in protections without overreaching

In today’s Denver market:

• Inspection contingencies are standard again and valued by thoughtful sellers who want a clean closing.
• Appraisal gaps are less common than during the pandemic; in many segments, you can structure your offer without promising to cover large gaps.​
• Seller concessions (closing cost credits, rate buydowns) are back on the table, particularly for condos and townhomes, which have felt more downward price pressure.​

The goal is a fair, data‑supported offer that protects you without signaling that you are looking for a steep discount or a “project” the seller is not willing to take on.

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Step 6: Inspect for Colorado‑Specific Risks

Inspection is where the Denver environment really matters.

Non‑negotiable inspections

For most city properties, consider:

• Full home inspection with a local inspector familiar with Denver’s clay soils and typical defects in 1920s–1960s construction
• Sewer scope to check for root intrusion or clay line failure—older neighborhoods are notorious for expensive sewer repairs
• Roof evaluation by someone who understands hail damage and local insurer expectations
• Radon test, particularly for homes with basements, given Colorado’s naturally higher radon levels

Issues like an older three‑tab shingle roof or a deteriorating sewer line are often negotiable through price reductions or seller credits, especially now that buyers have more leverage.​

HOAs and shared buildings

If you are buying a condo or townhome, scrutinize:

• The HOA’s reserve study and funding level
• Recent and upcoming special assessments
• Rules around rentals, pets, and exterior modifications

Attached homes in Denver have seen more price softening than detached properties because higher HOA and insurance costs strain affordability. That makes it even more important to understand the true monthly and long‑term obligations before you commit.​

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Step 7: Finalize Financing and Navigate Appraisal

Once you are under contract, your lender will order an appraisal that must support the purchase price.

Appraisal in a shifting market

Because prices in Denver have pulled back slightly from their peak and are still adjusting in some segments, appraisers may be conservative. If the appraisal comes in low, you and the seller can:​

• Renegotiate on price
• Split the difference
• Or, in some cases, agree to walk away if the gap is too large

Having a small cash buffer beyond your down payment gives you options here, but you should avoid relying on the idea of “just covering the gap” as a plan.

Rate lock and closing costs

With rates fluctuating and expected to grow slowly or level off, timing your rate lock matters. Review:​

• Total lender fees
• Credits from the seller
• Title and recording costs
• Any HOA transfer or status fees

This is the point where a “good” lender and closing team can save you thousands over the life of the loan.

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Step 8: Close, Move In, and Think Like a Long‑Term Owner

Closing in Denver is straightforward, but the real work is what you do in the first 12–24 months.

Prioritize the right projects

In a climate with hail, heavy spring snow, and strong sun at altitude, focus on:

• Roof integrity and proper insurance coverage
• Drainage, gutters, and grading
• Window and door sealing to reduce energy loss
• Essential mechanical updates (furnace, AC, water heater)

Cosmetic projects can often wait; protecting the structure and managing utility costs creates both comfort and long‑term value.

Track your neighborhood, not just the headlines

City‑wide averages mask big differences between, say, a Capitol Hill condo building with a healthy HOA and a small, thin‑reserve complex in another part of town. DMAR and REcolorado data, combined with periodic comparative market analyses, help you understand how your specific pocket is performing versus the broader Denver trend.​

Owning with this awareness makes decisions about future improvements, refinancing, or eventual selling much more strategic.

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Conclusion: A Deliberate Path Through a Balanced Denver Market

Buying a home in Denver today is no longer a race against runaway prices; it is a step‑by‑step process that rewards clarity, patience, and attention to the details that matter in Colorado’s climate and housing stock. A thoughtful approach—from pre‑approval and neighborhood selection through inspections and long‑term maintenance—positions you to benefit from a market that forecasters expect to grow modestly, around 3–4% annually, over the coming years.​

If you are considering a purchase within Denver city limits, reach out for a tailored, data‑driven strategy session—covering your budget, target neighborhoods, and current inventory—so you can move forward with a clear plan and confidence in every step of your Colorado real estate decision.