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By Renee Cohen, Realtor® | Coldwell Banker Global Luxury
A recent Zillow report made headlines claiming that “most homes in Denver have dropped in value.” It’s a bold statement — and one that’s causing concern for both homeowners and buyers.
But here’s the truth:
Home values in Denver are not collapsing. What’s dropping are Zestimates — and those are not the same thing.
Understanding What a Zestimate Really Is
Zillow’s Zestimate is an automated calculation. It’s generated by algorithms that pull from public records, listing data, and general area sales. While that may sound comprehensive, these models don’t see your home the way a local expert does.
Zestimates:
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Don’t account for upgrades, condition, or design quality.
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Often miss off-market sales, private transactions, or new community trends.
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Can’t value unique features, such as premium views, custom finishes, or a meticulously maintained property.
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Tend to fluctuate based on incomplete or outdated MLS data feeds.
In other words, a Zestimate is an estimate — not a professional opinion of value.
For example, a fully remodeled home in Hilltop or Greenwood Village may show a “value decrease” in a national algorithm, when in reality, its neighborhood demand and micro-market trends show stable or rising appreciation.
What the Data Actually Shows in Denver
According to the Denver Metro Association of Realtors Market Trends Report, home prices across the Denver Metro area remain stable as we move into 2026.
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The median home price has plateaued slightly after years of record-breaking gains — but it’s not in decline.
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Buyer demand has held steady, particularly in the $800K–$1.5M range.
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Inventory remains historically low, keeping well-prepared listings competitive.
What we’re seeing now is a market normalization, not a value loss. After an accelerated few years, prices are finding balance — a healthy correction that sets a stronger foundation for long-term growth.
Why Local Insight Matters More Than Ever
Automated estimates can be useful for broad overviews, but they simply can’t replace a local professional who understands the nuances of Denver’s micro-markets.
For example:
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A corner lot in Cherry Creek North will appraise differently than an identical property mid-block.
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A home backing to open space in Highlands Ranch commands a premium compared to one a few streets over.
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A condo in LoHi with strong walkability and modern finishes can outperform Zillow’s algorithm by tens of thousands of dollars.
These differences are subtle, but they matter — and only a local Realtor can quantify them.
What Homeowners Should Do Instead
If you’re a homeowner concerned about your Zillow estimate, take a step back and look at the bigger picture.
1️⃣ Request a Comparative Market Analysis (CMA) from a local Realtor.
This report uses verified sales, real-time data, and professional insight to determine your true market position.
2️⃣ Review your property details on Zillow.
Incorrect square footage, bedrooms, or outdated renovation info can skew your Zestimate dramatically.
3️⃣ Track local trends, not national headlines.
The Denver real estate market — and even each neighborhood — moves independently from national averages.
You can verify current conditions at REcolorado Market Watch, which provides MLS-based data that reflects actual buyer and seller activity in your area.
The Bottom Line
Zestimates are a tool — not a truth.
In 2026, Denver’s market remains balanced, stable, and strategic. Homes that are priced accurately, staged well, and marketed effectively continue to attract strong offers, many within the first few weeks of listing.
When it comes to understanding your home’s real value, don’t rely on a national algorithm.
Work with an experienced Realtor who understands your neighborhood, your home, and the human side of real estate.
📍 Renee Cohen, CRS, LPS
Coldwell Banker Global Luxury
Certified Residential Real Estate Divorce Specialist
🎙 Host of The Real Estate and Divorce Podcast
Visit ReneeCohenHomes.com
