Quick Stats for Colorado Springs Housing Market

• Average Sales Price: $535,645 (up from $529,900 last year)
• Average Days on Market: 71 (up from 53 last year — a significant shift)
• Months of Inventory: 4.1 months (compared to 3.1 months in December 2025)
• New Listings: 1,145 (up 88.9% from December 2025, up 9.8% from last year’s 1,043)
• Pending Sales: 485 (down slightly from 507 last year)
• Homes Sold: 573 (down 25.2% from December’s 766, down 3.4% year over year from 593)

Market Mood This Month

The January data is in, and if there is one word to describe the current state of the Colorado Springs housing market, it’s recalibration. Prices remain stable year over year, but the pace of the market has clearly slowed. That’s not a bad thing. Average days on market jumped significantly, telling us Buyers are taking more time to purchase. They are asking more questions and negotiating more confidently.

Inventory rose to 4.1 months in January, officially crossing the threshold into a Balanced Market. With new listings nearly doubling since December, Buyers finally have the options they’ve been waiting for. However, a massive disconnect remains between Seller expectations and market reality.

The average price for a new listing was $593,370, yet the average sales price sat at $535,645. This 11% gap (or $58,000 disconnect) is resulting in Death by 1,000 Price Cuts, a phenomenon where overconfident Sellers list too high and are forced into multiple small, reactive reductions to catch up with falling demand. In fact, 31% of active listings cut their price in January, averaging a $13,000 drop on a $500,000 home.

By choosing two or three small price trims rather than one meaningful adjustment at the start, Sellers are languishing on the market, stretching the Average Days on Market to 71 days. The proof is in the fallout: Expired listings doubled over last year, and between those and withdrawn listings, nearly 180 Sellers were forced off the market because their initial strategy didn’t align with Buyer reality.

Quick Advice for Buyers

You finally have leverage. With inventory up 18.3% over last year and 4.1 months of supply, you don’t have to rush. Use this time to negotiate for repairs or closing cost concessions. However, don’t wait for a crash that isn’t coming. Stability is the name of the game in 2026. Well-prepared Buyers can find real value in today’s market, so be sure you are pre-approved with a reputable lender before you start looking for your new home.

Quick Advice for Sellers

Pricing correctly from day one is no longer optional, it’s your entire strategy. With a massive $58,000 gap between what Sellers are initially asking and what Buyers are actually paying, overpricing is the fastest way to end up as an Expired statistic.

To get SOLD, you must price based on today’s closed comparables, not your neighbor’s wish price from the Unicorn Years, that rare, unsustainable period (2020–2022) marked by record-low interest rates and extreme Buyer competition that drove home values up at an unnatural pace. Today’s Buyers are highly informed and refuse to chase unrealistic numbers. If you want to avoid the 71-day drag, your home must be the best value on the market the moment the sign hits the yard. Price for the market we have, not the one you wish we had.

Watchlist – What’s Coming

Keep a close eye on interest rates. While they have stabilized in the low 6% range, any further dip could bring a wave of Buyers back off the sidelines, potentially tightening this newly found inventory. For now, expect the Balanced Market trend to continue through the spring with pricing the defining factor.

Rising expired and withdrawn listings suggest some Sellers may pause before re-entering the market later in the year, often at more realistic prices.

Ready to Make Your Move?

Whether you’re trying to navigate this new surge of inventory as a Buyer, or you need a precision-priced strategy to get your home sold without the 71-day drag, experience is your best asset. With over 30 years of navigating the Pikes Peak real estate landscape, I’ve helped both Buyers and Sellers find success in every type of market imaginable. I’m here to offer the data and a no-pressure environment to help you make your next move with confidence.

Let’s start the conversation: Mimi Foster