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The Denver condo market in 2026 is the softest part of Colorado real estate, and condo loans got stricter. Denver metro condos and townhomes closed at a $365,500 median in September 2026, down 6.28% from a year ago, with 7.21 months of inventory (DMAR, September 2026). And Fannie Mae now requires a full project review for most attached condos; the lighter "Limited Review" is gone from its Selling Guide. Buying or selling a condo in Denver, Aurora, Lakewood or Englewood? Here are the numbers, the loan rules, and the checklist.
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$365,500 Denver metro condo/townhome median September 2026, down 6.28% from a year ago (DMAR) | 7.21 Months of condo inventory All Denver homes: 4.76 months (DMAR, September 2026) |
7.32% 30-year fixed rate Freddie Mac PMMS, October 22, 2026 | 10% Of the HOA budget to reserves Fannie Mae Full Review test |
Is the Denver condo market crashing?
No crash, but condos are falling while houses hold. The Denver Metro Association of REALTORS (DMAR) September 2026 report puts the condo and townhome median at $365,500, down 6.28% from September 2025, with 7.21 months of inventory. Across all Denver metro homes, inventory is 4.76 months and sellers received 98.45% of list price. The Colorado Association of REALTORS (CAR) counts the 7-county metro a little differently and lands in the same place:
| Denver metro, September 2026 | Condos and townhomes | Detached homes |
|---|---|---|
| Median price (CAR) | $375,000, down 6.2% | $610,000, down 1.3% |
| Months of supply (CAR) | 6.4 months | 4 months |
| Median price (DMAR) | $365,500, down 6.28% | Year-to-date $650,000, same as the past two years |
Condos and townhomes in the CAR metro numbers averaged 67 days on market. CAR names the reasons: rising HOA fees, insurance costs and affordability. Statewide, CAR reports condo and townhome prices down 7.1% to $395,000, while detached homes slipped 0.9% to $575,000. Higher priced condos run the other way: DMAR reports year-to-date attached sales over $1 million up 6.35%. Watch live inventory on our Denver real estate statistics page and read the full picture in is the Denver housing market crashing?.
Why are condo prices going down in Denver?
- Rates. The Freddie Mac 30-year fixed rate was 7.32% on October 22, 2026, up from 6.19% a year earlier. On a $365,500 condo with 5% down, principal and interest is $2,385 a month at 7.32% versus $2,124 at 6.19%. That is $261 more every month before dues. See this week's numbers on our Colorado mortgage rates page.
- HOA dues and insurance. The HOA's master policy, the reserves and the monthly dues all land in the buyer's payment. A buyer qualifies on that full number.
- Stricter loan reviews. A condo that fails the lender's project review cannot get a standard Fannie Mae loan, so the buyer pool shrinks to cash or other loan types.
- Supply. 7.21 months of condo inventory means buyers pick, and sellers compete on price and concessions. CAR reports 64% of September Denver metro sales included seller concessions.
Can I still get a loan on a condo in Colorado?
Yes, but the building gets reviewed along with you. Fannie Mae updated its condo project standards in Lender Letter LL-2026-03 (March 18, 2026). Its Selling Guide, updated August 5, 2026, lists these review paths:
| The condo you are buying | Fannie Mae project review |
|---|---|
| Attached unit in an established condo project (most Denver condos) | Full Review with the Condo Project Manager tool, FHA project approval, or a Fannie Mae review (streamlined PERS) |
| Attached unit in a new or newly converted project | Full Review with the Condo Project Manager tool, or a Fannie Mae review (standard PERS) |
| Unit in a 2- to 4-unit condo project | Review waived (basic requirements still apply) |
| Unit in a 5- to 10-unit project that is not part of a larger development or master association | Review waived (basic requirements still apply) |
| Detached condo unit | Review waived (basic requirements still apply) |
The old "Limited Review" path is no longer in the list. For an attached condo in an established building, the lender now reviews the whole project.
What does a Full Review check?
Per the Fannie Mae Selling Guide (B4-2.2-01), the lender checks, among other items:
- Reserves. The HOA budget sets aside at least 10% for replacement reserves, or the lender accepts an acceptable reserve study instead.
- Delinquent dues. No more than 15% of the units are 60 days or more past due on HOA dues. In a 100-unit building, that is 15 units.
- Special assessments. No more than 15% of the units are 60 days or more behind on each special assessment.
- An adequate budget with line items that fit the type of building.
- Not an ineligible project under Fannie Mae's list in Selling Guide section B4-2.1-03.
Not every buyer needs a Fannie Mae loan. Ask our lender partner whether an FHA, VA or portfolio loan fits a building that fails the review, and check CHFA down payment assistance if you need help with the down payment.
Condo buyer checklist for Denver
- Ask the lender before you offer whether the building passes Full Review or has FHA approval.
- Read the budget and reserves. Is 10% of the budget going to reserves? Is there a reserve study?
- Read the last 12 months of minutes for special assessments, roof or siding projects and lawsuits. See what to do about a special assessment before closing.
- Check the master insurance policy, its deductible, and what your own HO-6 policy has to cover. Our home insurance checks for Denver buyers walk through it.
- Price the full payment with dues, taxes and insurance in our Colorado mortgage calculator, and add dues prorations to your Colorado closing costs.
- Ask for concessions. With 7.21 months of supply, a rate buydown or closing cost credit is on the table. See seller concessions for Colorado buyers.
Know your HOA rights before you buy: Colorado HOA laws 2026, our Colorado HOA fees guide and the Denver HOA rules and fees guide.
How this affects you
Buyers. Condos give you the most room to negotiate in Denver right now: 7.21 months of supply and a median down 6.28% (DMAR). Get the building's loan status first, then push on price or a rate buydown; $261 a month separates a 7.32% payment from last year's 6.19% on a $365,500 condo. Start your search on our Denver condos for sale page.
Sellers. Order the HOA budget, reserve numbers, minutes and insurance certificate before you list, so a buyer's lender can start the project review on day one. A building that passes Full Review or holds FHA approval opens the door to more buyers; tell buyers that in the listing. Price against the live competition with a free home value report.
Homeowners. Your HOA's reserves and delinquency rate now decide whether your neighbors' buyers get a loan. Go to the HOA meetings, read the reserve study, and push the board to fund reserves at 10% of the budget or more.
The Colorado market. Statewide, CAR reports condo and townhome prices down 7.1% to $395,000 in September 2026 while detached homes held. Compare condo vs townhome in Denver and read should I buy now or wait for rates.
What to watch out for
- Falling in love before the lender checks the building. A unit you can afford in a building that fails review becomes a cash-only purchase.
- Thin reserves. Under 10% of the budget to reserves fails Fannie Mae's Full Review test and points to a future special assessment.
- Delinquent neighbors. More than 15% of units 60 days behind on dues fails the review.
- A high master policy deductible. Owners split that bill after a hail or water claim.
- Dues left out of the budget. Lenders count them, and so does your bank account every month.
Denver condos and townhomes for sale
These homes are pulled live from the MLS every time you open this page. Browse more on our Colorado condos page, the Denver townhomes guide, or homes for sale in Littleton and Lone Tree.
