Colorado Springs Market Information

Current Market Conditions: August is the month the shift stopped being subtle. Only 996 homes closed in the Pikes Peak Region, down 4.1% from last August and the first time August has come in under 1,000 closings since 2012. At the same time there were 4,297 homes sitting on the market, up 3.8% year-over-year and the biggest August inventory since 2011. So you have the most August selection in fifteen years running into the slowest August sales pace in fourteen. Prices responded. The average sale price fell to $547,521, down 3.3% from last year and off about $21,000 from July. The median landed at $470,000, down 2.1%. Homes took 49 days to sell, up from 43 a year ago, and months supply climbed to 4.3. Year to date the region is still slightly ahead of last year at 8,182 closings, so the full-year picture has not broken. What changed is the balance of power inside any given transaction, and buyers are the ones who picked it up.

Price Trend Analysis: Two months of decline now. The average sale price peaked in June at $577,638, slipped to $568,633 in July, and dropped again to $547,521 in August. That is roughly $30,000 off the summer high. The median did the same thing, falling from $499,900 in June to $470,000, which puts it below where it started the year. This is the lowest August average since 2022 and the lowest August median since 2021. Look at the full 13 months and the shape is still a normal seasonal arc with a lower peak than last year, not a collapse. February’s $524,494 remains the floor. But the direction into fall is clearly down, and the summer bounce did not hold the way it usually does. Sellers who were waiting for one more month of appreciation should stop waiting. Buyers who have been sitting on the sidelines since spring finally have both selection and softer pricing at the same time.

Inventory Analysis: Active listings held at 4,297, essentially flat against July’s 4,317 but still 3.8% above last August and the highest August count since 2011. The eight-month climb from December’s low of 2,837 has finally leveled off, which is normal for this time of year. What did not level off is the gap between what is coming on and what is going under contract. New listings actually fell slightly to 1,447, down 0.8%, so sellers are not the ones flooding the market. The issue is on the demand side. Closings dropped to 996 and total homes under contract at the end of August came in at 1,412, down about 10% from 1,568 a year ago. Fewer pendings now means fewer closings in September and October, so this softness has some runway left in it. Months supply moved to 4.3 from 4.0 last August. A balanced market usually runs five to six months, so the region is not oversupplied yet, but it is the closest it has been to balanced in years.

Price Range Analysis: The line slopes down harder than it did in July, and the split is now clean. Everything under $700K is still a seller’s market: 30% under $300K, 29% in the $350K-$400K band, 27% at $400K-$450K, and 21% to 24% through the $600Ks. Above that it falls apart fast. The $700K-$800K range sits at 19%, $800K-$900K dropped to 15%, and $1.25M and up is at 13% and 10%. Last month the $800K-$900K band was absorbing at 27%. It is at 15% now, which is the biggest single-band swing on the chart and moves that price point out of seller’s territory entirely. The practical line in this market is around $700,000. Below it, a well-priced home still gets attention in a reasonable window. Above it, you are competing in a buyer’s market whether the listing reflects that or not.

Days Supply Analysis: This is a fresh quarter of data, not a repeat of last month, and every single band moved up. The $300K-$400K range is still the fastest at 106 days, with $400K-$500K right behind at 108. From there it is a steady climb: $500K-$600K and the entry level under $200K both at 118, $600K-$800K at 124, $200K-$300K at 126, $800K-$1M at 138, and $1M-$2M at 153. Then the top of the market goes off the chart. At $2M and above there are 542 days of supply, close to a year and a half of inventory at the current pace, and that is up from 323 days last quarter. There were 106 homes listed over $2M and 18 of them sold in three months. If you own one, understand what you are up against. Everywhere else the market still functions, it just takes three to five months instead of three to five weeks.

Negotiation Power: Of the 775 single family and patio homes tracked in this report for El Paso and Teller counties in August, 15% sold over asking, 19% closed right at asking, and 66% sold below. July was 17% over and 64% below, so the drift keeps going the same direction. Most below-asking sales still land within a few thousand dollars of list, so read this as sellers pricing ahead of the market and then meeting buyers partway, not as fire sales. The strongest spot on the board was $200K-$300K, where 26% went over asking. The $800K-$900K band also held up oddly well at 19% over, though on only 27 sales. The softest was $700K-$800K, where 76% closed under list, and $900K to $1M, where exactly one home out of 23 sold over asking. If you are listing this fall, the first two weeks are the whole ballgame. Price it to the last 30 days of comparable closings, not to what the neighbor got in May.

On the Ground: Buyers are still out looking. The first week of September brought about 3,400 showings across El Paso and Teller counties on roughly 4,880 listings, and the heaviest traffic by far was on homes between $300,000 and $500,000. So the activity is real, it is just concentrated, and people are taking their time. That is the whole story of August in one sentence. Homes in the middle of the market that are clean, well photographed, and priced to recent closings are still going under contract. Homes priced off spring comps are sitting through their second and third price reduction. Above $700,000 the math has genuinely changed and sellers need a longer runway and room to negotiate. Above $2M, plan in quarters, not weeks. One thing worth watching: pendings are down 10% year-over-year, so September and October closings are likely to stay soft. Inventory typically starts pulling back after Labor Day, which will help sellers a little, but it will not undo what the last three months did to pricing power.

Condo Market Highlights: The attached side is having a harder time than the single family side, and August made that plain. Only 132 condos and townhomes closed, down 19.5% from last August. The average price fell 5.8% to $326,093 while the median barely moved at $327,750, down 0.2%, which tells you the drop came from fewer high-end units closing rather than from values falling across the board. Inventory is the real pressure point. Active condo listings hit 762, up 11.4% year-over-year, even though new listings fell 12%. That combination pushed months supply to 5.8, up 38% from last August and well past the 4.3 on the single family side. Condos are now the most buyer-friendly part of this market by a wide margin. Homes are averaging 61 days to sell. If you are selling, price against what has actually closed in the last 60 days and plan on helping with closing costs or HOA dues. If you are buying, this is where your dollar goes the furthest right now, and you have room to ask.