Colorado Springs Housing Market Today in 2024

This March, our housing market moved at a slow pace, the slowest we've seen in March for over ten years! Home prices stayed about the same as they've been for the last three years, so no big surprises there. However, we're starting to see more homes available for sale, but with interest rates sticking around 7%, it's a mixed bag. Check out the full breakdown of last month's real estate stats below.

The Colorado Springs Real Estate Market Update
*Updated on April 5th, 2024

SUMMARY: The median home price reflects the middle price of homes sold in El Paso/Teller Counties based on the sales data from March 2024, essentially indicating the price at which half the homes sold for more and half for less. Meanwhile, the average sales price is calculated by summing the sale prices of all properties in El Paso/Teller Counties during the same timeframe and dividing by the number of properties sold, offering a broad overview of the market's pricing landscape. For understanding the typical price range of homes in Colorado Springs, the median home price is often more indicative, as it avoids skewing by exceptionally high or low sales prices.

10-Year Home Price Trend in Colorado Springs

Home prices have stabilized in Colorado Springs.

The sales prices for the past three March have been remarkably consistent. It's challenging to forecast the exact direction of the sales trend from here. In El Paso County, our current inventory stands at 2.9 months. Typically, a six-month inventory indicates a balanced market. So, while we are seeing more homes available than in recent years, we would still need to see an increase in inventory for home prices to begin to decline.

10-Year Active Inventory Trend in Colorado Springs

More homes are coming on the market every month in Colorado Springs.

The chart shows that we had the third-most homes for sale this March compared to the last ten years. Also, home prices haven't gone up or down much in the last three years. If we keep seeing more homes for sale, prices might drop because of the laws of supply and demand. This means if there are a lot of homes available, buyers might have a better chance to negotiate and get lower prices in the future.

10-Year Home Sales Trend in Colorado Springs

These sales trends indicate that the Colorado Springs housing market is slowing down.

Last March, we saw the lowest number of homes sold in ten years for that month. If this trend continues through the summer, we might see home prices fall because there will be more homes for sale than people looking to buy. This could be good news for buyers waiting for a better time to buy a house. Sellers might have to wait longer to sell their homes and could need to lower their prices to attract buyers. This shift could balance the housing market, helping first-time buyers and those looking to move into a bigger home find something within their budget. Both buyers and sellers should watch how things change over the summer, as it could affect their plans. 

Is Colorado Springs in a buyer's or seller's market right now?

Colorado Springs has recently been at the forefront of an exceptionally strong seller's market, the likes of which we haven't seen before. However, the tide is beginning to turn in favor of buyers. Last month, we witnessed sales of just 941 homes, marking the lowest March sales figure in a decade. The time it takes to sell a home is also rising. This trend suggests a gradual shift from a seller's market towards a more balanced, if not a buyer's market, especially as we continue to see increased available homes for sale.

For sellers, this means more patience might be needed, and in some cases, pricing strategies could need to be adjusted to attract buyers. Many homeowners are currently hesitant to sell, mainly due to the higher interest rates now compared to the very favorable rates they might currently have.

Despite these shifts, Colorado Springs continues to attract significant numbers of new residents. This ongoing influx is fueling commercial development and the growth of our neighborhoods, with new homes and apartment complexes continuing to rise. It's an exciting time for our community as we navigate these changes together, offering opportunities for both buyers and sellers in this dynamic market.

Is the Colorado Springs housing market going to crash soon?

Over the past year, we've seen an increase in available properties, yet the market remains vibrant and active, avoiding any downturn toward a recession. The median price for homes listed for sale has remained stable, closely mirroring last year's figures. This stability is a positive sign, showing no immediate risk of a housing market crash in our area. Instead, we're witnessing a gradual shift.

In 2024, home prices in the Pikes Peak region have held steady despite average interest rates. This balance is thanks to a gradually increasing supply meeting the demand for single-family homes in Colorado. As the inventory continues to align with buyer demand, we might anticipate a slight price adjustment throughout the year.

Additionally, there's a growing trend of homeowners tapping into their equity by borrowing against their property. This movement indicates a change in the national housing market. However, it's still too early to forecast how these dynamics will fully play out and when the inventory will increase to stabilize the market further.

Indeed, predicting the housing market's future is challenging in these changing times. Yet, these shifts offer opportunities and considerations for buyers, sellers, and investors alike. Let's closely monitor these trends as we navigate the market together!

Our real estate agents at Great Colorado Homes enjoy discussing the local market with anyone interested in learning about it. If you have any questions, feel free to contact us.

*Based on information from the Pikes Peak REALTOR® Services Corp. ("RSC"), for the period March 1, 2024, through March 29, 2024. RSC does not guarantee or is in any way responsible for its accuracy. Data maintained by RSC may not reflect all real estate activity in the market.

Recent Blog Posts About Our Local Market