As of March 19, 2025, the real estate market in Colorado Springs is buzzing with activity, reflecting a city that’s increasingly in the spotlight. Nestled at the foot of Pikes Peak, this vibrant hub has earned a reputation as a desirable place to live, thanks to its blend of natural beauty, a strong economy, and a housing market that’s showing some intriguing shifts. Let’s dive into what’s happening in the Colorado Springs real estate scene right now.
The numbers tell a compelling story. The median home price in Colorado Springs hovers around $475,000, a figure that’s up modestly by about 4% from last year. While this growth isn’t as explosive as the double-digit surges of the past decade, it signals a market that’s stabilizing rather than cooling off entirely. Inventory, however, is where the real change is happening. Homes for sale have climbed to over 3,000—up significantly from the scant 400 listings in the summer of 2021. This increase has stretched the average days on market to 62, the longest in ten years, giving buyers more breathing room and options than they’ve had in recent memory. With a 3.3-month supply of homes, we’re still short of the six-month benchmark for a balanced market, but the trend is clear: the scales are tipping toward buyers.
What’s driving this shift? High interest rates, hovering around 6.79% for a 30-year fixed mortgage, have sidelined some buyers, slowing sales velocity—October 2024 saw a 17.3% uptick from the previous year, yet year-to-date sales are down 3.1% compared to 2023. Meanwhile, Realtor.com has pegged Colorado Springs as the hottest market for 2025, forecasting a 27.1% jump in sales and a 12.7% price increase, fueled by military households, remote workers, and a growing tech sector. Skeptics among local agents argue that such a leap seems ambitious given the current supply glut, but the city’s economic fundamentals—think military bases, tech growth, and tourism—lend credence to the optimism.
For buyers, this moment offers a rare chance to negotiate, especially as 45.94% of listings saw price drops in the last 30 days. Sellers, on the other hand, need to price strategically to stand out in a crowded field. Looking ahead, if inventory keeps rising, we could see prices soften further, though Colorado Springs’ long-term appeal suggests resilience.