Here is a quick overview of the Colorado Springs housing market predictions for the Pikes Peak region real estate landscape. September brought a noticeable shift across our local housing scene, giving both Buyers and Sellers fresh factors to consider. Interest rates shifted upward toward the end of September, and inventory steadily expanded. We are watching the market move closer to a balanced Buyer market/Seller market than we have in years. Let’s see where the market stands and how you can position yourself for success.

Quick Stats

• Average Sales Price: $554,263 (down 2.4% from $567,772 last year)
• Average Days on Market: 49 days (down from 50 days last year)
• Months of Inventory: 4.5 months (up 15% from 3.9 months last year)
• New Listings: 1,154 (down 2.7% from 1,187 last year)
• Pending Sales: 458 (down from 550 last year)
• Homes Sold: 824 (down 7.8% from 894 last year)

Market Mood This Month

The big takeaway again this month is that pricing is everything. Nationally, average interest rates stepped up from 6.5% at the end of August to 7.4% by the end of September. This rate bump impacted Buyer purchasing power, driving down total local pending sales to 458, and homes sold to only 824.

At the same time, inventory is climbing. With 4.5 months of inventory now on the ground, we are moving steadily into a balanced market, leaning closer to a Buyer’s market than Colorado Springs has seen in a long time.

Sellers are adjusting rapidly to this transition, and if they’re not, they are languishing on the market. During the last week of September alone, 602 listings had price reductions compared to the 300 new listings that came onto the market. In total, 40% of active listings underwent a price reduction, averaging 2.88% (roughly a $14,400 drop on a $500,000 home). While average list prices held at $647,136 (compared to $664,570 last year), the average list price of new listings stood at $605,747 against an average sales price of $554,263. This huge gap underlines why price adjustments are happening: initial list prices must reflect current Buyer activity rather than desired values from peak times.

Quick Advice for Buyers

If you have been waiting on the sidelines for more options and less frantic competition, this is your window. With 4.5 months of inventory available, you have more breathing room to tour properties, negotiate terms, and request repairs. While interest rates bumped up to nearly 7.4% at the end of September, remember that price cuts are widespread across 40% of listings. That gives savvy Buyers significant leverage to negotiate lower sales prices or ask Sellers for rate buy-downs.

Quick Advice for Sellers

Pricing correctly out of the gate is critical. With price reductions outnumbering new listings two-to-one during the final week of September, overpricing your home leads to sitting on the market, price cuts, or becoming one of the 129 expired or 56 withdrawn listings we saw this month. Presenting a turnkey home at a sharp, competitive market price will attract serious Buyers quickly before days on market start accumulating.

Watchlist – What’s Coming

As we head deeper into the fall months, expect seasonal slowdowns to intersect with shifting mortgage interest rates. In addition, markets tend to stall during an election cycle, so if you’re thinking of buying, it’s a great time. We will be watching closely to see if inventory continues its march toward 5+ months, which would firmly place us in a Buyer’s market. If rate fluctuations stabilize, Buyer demand may hold steady as we approach the holiday season.

Ready to Make Your Move?

Navigating a shifting real estate market requires experienced guidance grounded in local market knowledge. Having guided clients through every type of market swing, I take pride in helping both Buyers and Sellers make confident, informed decisions with zero pressure. Whether you are curious about your home’s current equity or ready to start searching for your next property, reach out to Mimi Foster today to discuss your unique goals.