Colorado Springs Home Prices Fall As Sellers Adjust Expectations

The Colorado Springs housing market showed clear signs of cooling in the week ending Nov. 1, with 53.7% of active listings taking price reductions while inventory climbed to 3,070 homes. The metro’s weekly absorption rate plummeted 50.4% from 476 homes last year to 236 homes, even as the median list price of $529,999 sits $105,000 below Colorado’s statewide median.

The data reveals a market grappling with shifting dynamics. While Colorado Springs remains more affordable than the state average at $227.2 per square foot compared to $268.7 statewide, sellers are increasingly adjusting expectations. The high percentage of price cuts, affecting more than half of all active listings, signals widespread seller concessions in a market where homes now take a median 77 days to sell, up from 63 days a year ago.

Inventory builds as absorption slows

Colorado Springs recorded 154 new listings during the week while absorbing 236 homes, maintaining a months of supply at 3.4, above the national average of 2.9 months but close to Colorado’s 3.1 months. The inventory growth to 3,070 active listings reflects accumulating supply as buyer activity moderates.

The decline in weekly absorption represents a shift in the market. With 240 fewer homes absorbed per week compared to last year, the pace of market activity has effectively halved, contributing to the inventory buildup and extended selling times.

Pricing pressures mount despite affordability edge

At $529,999, the Colorado Springs median list price has declined 3.6% from last year’s $549,900. The metro’s price per square foot of $227.2 provides a 15.5% discount to the state average, positioning it as one of Colorado’s more accessible markets. However, this relative affordability hasn’t prevented widespread price adjustments, with only 1.5% of listings increasing prices during the week.

The 10.4% relisting rate indicates roughly one in 10 properties has returned to market after a previous attempt to sell, further evidence of the disconnect between seller expectations and buyer demand.

What to watch

Monitor the 53.7% price reduction rate as a leading indicator of market conditions. Track whether weekly absorption can stabilize above 200 homes or continues declining. Watch if the 77-day median days on market extends further, particularly as winter approaches.

Use the 3.4 months of supply metric to gauge market balance, movement above 4 months would signal further shift toward buyers. Advise clients to factor in the $105,000 price gap between Colorado Springs and state medians when evaluating opportunities. Leverage the 20.1% inventory growth data to set realistic pricing expectations in listing presentations.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate a housing market report. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.