If you’ve been sensing a bit of a standoff in the Colorado Springs housing market lately and if the February numbers are any indication, the answer is a resounding ‘yes’ . . . but it’s not all bad news. We are officially in the middle of what I call the Unicorn Years’ Hangover. Many Sellers who bought or refinanced between 2020 and 2023 are holding onto those peak-market dreams. The Unicorn Years . . . described as a rare or magical (i.e. unicorn) real estate market between 2020 and 2023 where there were historically low interest rates, insanely high demand, and record-setting double-digit price appreciation. In our much more stable 2026 market, Buyers are operating in a different reality.
The result? A massive $106,907 disconnect between the average price of a New Listing ($632,371) and the actual Average Sales Price ($525,464).
The February Breakdown
- Average Sales Price: $525,464 (Down from $549,743 last year)
- Average Days on Market: 65 Days (Creeping up from 59 last year)
- Months of Inventory: 3.6 Months (Tightening up from 4.1 in January)
- New Listings: 1,259 (A huge 19.8% jump over last year!)
- Pending Sales: 610 (More activity than the 579 we saw last year)
- Homes Sold: 685 (Up 19.5% from last month)
The Mid-Market Pileup
The most telling part of this month’s data isn’t just the average, it’s where the homes are sitting. We have a sweet spot for first-time Buyers in the $300,000 to $399,999 range, yet nearly 50% of the Active listings in that bracket have already had to reduce their price. Why? Because many Sellers are overreaching on their initial ask. They want to profit from the exaggerated prices of the Unicorn Years, but the market is demanding a correction. In fact, across all price points, we saw an average price reduction of 3%, which translates to a $15,000 cut on a $500,000 home.
| Price Range | Active Listings | Price Reductions | % Reducing Price |
| $200k – $299k | 45 | 14 | 31% |
| $300k – $399k | 285 | 141 | 49.5% |
| $400k – $499k | 566 | 165 | 29% |
| $500k – $599k | 410 | 119 | 29% |
| $600k – $799k | 415 | 128 | 31% |
| $800k – $999k | 193 | 53 | 27% |
Quick Advice for Buyers
You have more choices than you’ve had in a long time. With New Listings up 20% over last year, the Spring Rush appears to have started early. If you are looking in that $300k–$400k range, pay close attention to how long a home has been Active (Days on Market). With half of your competition cutting prices, you have the leverage to negotiate.
Quick Advice for Sellers
The holding-your-breath phase of late last year is over, and the pent-up desire to move is bringing more competition to the market every day. If you want to avoid being one of the 176 homes that went Back on the Market or the 74 that expired last month, you have to price for the current market, not your 2022 appraisal.
Watchlist – What’s Coming
As interest rates continue to soften, that pent-up demand is going to keep flowing into the market. However, with over 600 homes sitting in the $600k–$999k range, the clog at the higher end of the market means Sellers in those brackets need to be extra patient or extra aggressive with their pricing.
Ready to Make Your Move?
Navigating a market where the numbers don’t always seem to make sense is what I’ve spent the last thirty-plus years doing. Whether you are a Buyer looking for that elusive sweet spot deal or a Seller trying to navigate the $100k expectation gap, I’m here to offer the grounded, expert perspective you need. No pressure, just decades of experience working for you.
Let’s get you moving: Mimi Foster
