This spring we can report good news for both home buyers and sellers in the Colorado Springs area, with four trends emerging. Inventory is growing meaningfully while sales volume and prices are declining modestly. This combination typically benefits buyers with more options and somewhat softer pricing. Buyers are seeing a variety of well-priced homes while they are taking advantage of the lowest interest rates in 4 years, currently hovering around 6%, the lowest rates since 2022. The good news for sellers is that the market is active. We saw a robust 34% increase in sales in March, but a small decline compared to the same month last year. Since inventory is rising, sellers will have to price their homes more competitively to attract offers.
The 4 Key Trends To Watch:
1. Rising Inventory is the most significant trend. While the number of active listings increases every spring, the March active listing inventory of 3,057 is up 16.3% compared to March 2025. More inventory typically gives buyers more choices and can ease upward pressure on prices.
2. Sales Volume is slightly softening. There were 1,036 closed sales in March, a big increase from February but down 2.2% from March 2026. Year-to-Date sales total 2,446 which is a slight 1.6% decrease from last year. Sales remain stable but show a mild decline, suggesting demand is not keeping pace with the increased supply.
3. The Median Sale Price is declining. The median or midpoint sale price in March was $495,000, down 4% from March 2025. This is a meaningful drop. Combined with rising inventory, it indicates that sellers are facing more competition, which is starting to moderate price growth (or even reduce prices in some segments).
4. Market Balance is shifting toward buyers. The Months Supply of Inventory increased to 3 months (from 2.5 months in March 2025). While still considered a seller’s market (under 4–6 months is generally balanced to seller-favorable), the move from 2.5 to 3 months shows the market is cooling slightly and becoming more balanced.
Moving into the summer months we can anticipate an increase in Days on Market if current trends continue. Then again, a meaningful drop in interest rates could fuel higher demand and change market dynamics quickly. Buyers may benefit by taking advantage of current market conditions, with an increasing selection of attractively priced homes paired with motivated sellers prepared to make concessions- such as helping with loan expenses or rate buydowns.
