Quick Stats

• Average Sales Price: $550,845 (down from $553,269 in 2025, up from $525,464 last month)
• Average Days on Market: 58 (same as last year but down 11% from last month)
• Months of Inventory: 2.9 months (down from 3.6 months last month)
• New Listings: 1,402 (up from 1,315 last year and up nearly 30% from last month)
• Pending Sales: 720 (vs 794 in March 2025)
• Homes Sold: 893 (same as last year)

Market Mood This Month

March gave Colorado Springs a solid entrance into the spring housing market. We saw a massive seasonal awakening with Sellers bringing a surge of new inventory. Interest rates are still the biggest source of hesitation. In February 2026, rates dipped below 6% for the first time in years, landing around 5.8%, giving Buyers some motivation.

But in March, the sensitivity to inflation and international news remained the primary driver of market caution as rates bounced around, ending the month closer to 6.6%. That kind of volatility creates uncertainty, and uncertainty tends to slow decision-making.

Between February and March 2026, there was significant activity. Pending sales rose 18%, and momentum was undeniable with closed Sales jumping over 30%. Homes are also moving faster as the average Days on Market dropped 11%. That means Buyers are out there and wanting to move.

Inventory is shifting in a healthier direction. New listings were up about 7% over last year, and a staggering 30% over last month. This obviously gives Buyers more choices as spring begins. At the same time, months of inventory came in at 2.9, which is still a Seller’s Market. Bottom line: homes that hit the market at the right price are moving quickly.

Seller expectations are also worth watching. The average price of new listings in March was $633,589, but the average sales price was $550,845. For the quarter, new listings averaged $618,433 while Sold homes averaged $538,886, a noticeable 13% difference! That gap tells us some Sellers are starting out overly optimistic, but Buyers are drawing a firm line on what they are willing to pay. Pricing strategy matters.

Price reductions are becoming more prevalent. About 33% of listings had a price reduction, and the average markdown was 3% (<$15,000 on a $500,000 home). Twenty-percent of homes over $1M saw cuts of 4%. That is not a sign of panic. It is a sign that Buyers are paying attention and Sellers who miss the mark are having to adjust. Back on Market homes totaled 223 in March, suggesting a mix of normal Buyer hesitation, inspection issues, financing hurdles, and second thoughts in a market that still requires confidence.

Quick Advice for Buyers

Do not even think of looking at homes without a pre-approval letter in hand. Find a trusted Lender and get the guesswork out of the way. Then you’ll be able to bid with confidence when you find your dream home. Buyers have more opportunity and flexibility than they did a month ago, and that is a welcome spring shift. Even with rates hovering around 6.6%, this market still offers opportunity if you negotiate wisely and move quickly when a home you love is priced right.

Quick Advice for Sellers

It is still a good market for Sellers, but it’s vital you realize this is not a market for wishful pricing. Buyers are watching value closely. Homes that shine the brightest are the ones priced correctly from day one with a clean, uncluttered presentation.

Watchlist – What’s Coming

Spring usually brings more activity, and March certainly pointed in that direction with stronger Pending sales and a big jump in closed Sales. At the same time, Withdrawn listings rose to 51 (from 39 last year), and Expired listings climbed to 80 (from 43). That tells us some Sellers are testing the market and learning that timing alone does not replace strategy. Keep an eye on rates, new construction competition, and whether this rise in inventory continues through the next several weeks.

Ready to Make Your Move?

With three decades of proven experience helping Colorado Springs Buyers and Sellers, I’m here to guide you through this market confidently. Call, text, or email Mimi Foster anytime. No pressure, no obligation, just the knowledge you need to make the right move.