Littleton Housing Forecast: What to Expect Next Year

by Source Home Group

As we look ahead to 2026, the Littleton housing market remains a key focus for buyers, sellers, and investors interested in this vibrant Colorado community. Understanding upcoming trends helps you make informed decisions whether you're planning to buy or sell.

Continued Moderate Price Growth

Experts forecast steady home value appreciation of approximately 1-3% throughout 2026. Although the rate of increase will be less aggressive than recent years' highs, Littleton’s limited inventory and sustained buyer interest will support moderate price growth, especially in high-demand neighborhoods like Historic Downtown and Ken Caryl.

Gradually Increasing Inventory

The supply of homes on the market is expected to improve gradually thanks to new construction projects and more sellers responding to favorable market conditions. However, inventory will remain below historical averages, keeping competition among buyers moderate to strong.

Influence of Interest Rates

Mortgage rates are projected to hover between 5.9% and 6.2% in mid-2026. While higher than the rock-bottom rates of previous years, these levels are still historically manageable. Changes in interest rates will influence affordability and buyer demand but are unlikely to derail market momentum in Littleton.

Neighborhood-Specific Trends

Historic Downtown Littleton: High demand and limited new listings keep prices relatively strong.
Ken Caryl & Columbine: Family-friendly neighborhoods with slow but steady price appreciation.
Newer Developments: Subdivisions on Littleton’s outskirts will offer fresh inventory options and moderate pricing advantages.
Roxborough Park: Continued interest driven by outdoor lifestyle appeal and mountain views.

Buyer and Seller Outlook

Buyers should prepare for moderate competition, particularly for well-priced and well-located homes. Sellers benefit from a market that remains favorable but should temper expectations for dramatic price jumps. Working with a knowledgeable local REALTOR like Cody Walker will help you navigate these nuances successfully.