While still expensive, seasonality is favoring the first-time homebuyer. From June to August, the average home price has decreased from $448,181 to $428,174 in Denver metro.
Even more promising, is that according to Trulia, October, November and December are the best months to buy in many metros. (The article doesn't specify Denver or any city for that matter, but it does say 70 of the 100 largest US cities.)
The reason for the reduced prices is related to the increase in inventory. Due to competition, inventory is depressed during the summer months, but gains in the fall when kids return to school and looking for a house is no longer feasible. For the October 1st - December 1st stretch, there are less buyers, longer sell times and, possibly, more amenable sellers. Starter homes specifically do well, with a 7% inventory increase, meaning you at least have a little more power than you do during the summer months.
Denver remains a hot market, so time will tell if this bears out, but the next few months are a good time to move if you've been hoping prices might relax.