Colorado Springs Housing Market Update October 2025: Why Now Might Be Your Best Chance to Buy
The Colorado Springs housing market has been through a whirlwind over the last few years — from the red-hot frenzy of 2020–2022 to the quieter, slower-paced market we’re navigating today. And while many buyers are still waiting and wondering if a crash is coming… the data from the Colorado Springs housing market October 2025 tells a very different story.
If you’ve been watching the Colorado Springs real estate market and thinking, “Should I wait? Should I jump in now?”, this month’s update gives you a clear look at what’s actually happening — and why the current conditions may offer more buyer opportunity than we’ve seen in years.
In this deep dive, we’ll break down the latest numbers from the Pikes Peak Multiple Listing Service for October 2025, explain what they mean for both buyers and sellers, and give you the local insight only a team who lives and works in the Springs every single day can share.
Let’s dig in.
What’s Really Going On in the Colorado Springs Housing Market?
A few years ago, homes in Colorado Springs hit the market and were gone in a weekend. Inventory was almost nonexistent, sellers held all the cards, and buyers were offering tens of thousands above list price just for a chance to compete.
Today? Very different story.
The recent numbers show a market that has cooled considerably — not crashed, not declined dramatically — but cooled. That cooling is what’s creating breathing room and opportunity for buyers who felt shut out before.
Here’s what the latest data shows.
New Listings: A Small, Steady Increase
In September 2025, the market saw 1,328 new single-family/patio home listings. In October, that number bumped up slightly to 1,389, a 4.6% increase month over month. Year over year, we’re down just a bit from 1,408 in October 2024 — a modest 1.3% decrease.
In other words: inventory isn’t exploding, but it’s growing, slowly and steadily.
More homes on the market means buyers have more options — something that felt impossible not long ago.
Home Sales: A Significant Dip in Activity
While new listings are up, sales took a noticeable drop.
- 1,026 sales in September 2025 → 876 sales in October 2025 (down 14.6%)
- A larger 12.2% drop compared to October 2024, when there were 998 sales
That’s a pretty significant decline.
What this tells us: Buyers are hesitant, often due to affordability concerns, interest rates, and overall financial sentiment. Meanwhile, sellers who are actively on the market need to sell — they’re not “testing the waters.”
This combination is a meaningful shift in buyer leverage.
Average & Median Prices: Leveling Out, Not Crashing
Let’s talk about prices — the piece everyone is waiting for.
Average Sales Price
- $565,356 → $543,590 from September to October (down 3.8%)
- Down 2.5% from October 2024
Median Sales Price
- $479,450 → $473,500 month over month (down 1.2%)
- Down just 0.3% year over year from October 2024
Prices are softening — not collapsing.
The word “crash” usually applies when home values drop 20–30%. We’re nowhere near that.
In fact, the market is simply normalizing after the meteoric rise of the last five to seven years.
Active Inventory: A Market With More Breathing Room
Active homes on the market decreased slightly month over month — 4,010 → 3,918 (a 2.3% drop) — but are up 15.4% compared to October 2024.
That year-over-year increase is the real headline.
More inventory → more choices → fewer bidding wars → more negotiating power for buyers.
For sellers, it means pricing matters more than ever. Well-priced homes still sell quickly. Overpriced homes sit.
Days on Market: Flat and Predictable
Homes are sitting on the market for 54 days on average, identical to last month.
This is a big difference from the 2020–2022 era, when 54 hours on market felt long. Today’s timeline reflects a more balanced, calmer market — one where buyers can actually think, breathe, and make decisions without feeling rushed.
Months of Supply: A Shift Toward Balance
Single-family/patio homes currently sit at 4.5 months of inventory, up from 3.4 months a year ago.
Four to six months of supply is considered a balanced market.
We were nowhere near balanced a few years back. Today, we’re much closer to healthy, stable territory.
The 10-Year Story: Understanding How We Got Here
To truly understand where we are today, we need to look at where we’ve been. The Colorado Springs housing market has undergone one of the most dramatic transformations in recent history — and the data over the past decade tells an incredible story.
The Pre-Pandemic Baseline (2015-2019)
Back in October 2015, the Colorado Springs market looked dramatically different:
- Median home price: $234,900
- Average sales price: $263,584
- Monthly sales: 1,107 homes
- Active inventory: 2,936 homes
This was a healthier, more balanced market. Buyers had choices, sellers had reasonable expectations, and appreciation was steady but not explosive.
From 2015 through 2019, the market showed consistent, sustainable growth:
- 2016: Median climbed to $255,625 (8.8% increase)
- 2017: Median reached $280,538 (9.7% increase)
- 2018: Median hit $305,000 (8.7% increase)
- 2019: Median arrived at $335,000 (9.8% increase)
During these five years, home prices appreciated roughly 42% — significant growth, but achieved through steady, year-over-year gains. This represented healthy appreciation driven by Colorado Springs’ strong fundamentals: job growth, population increases, quality of life, and limited new construction.
The market was balanced. Buyers weren’t desperate. Sellers weren’t greedy. Everyone operated within reasonable expectations.
The Pandemic Disruption (2020-2022)
Then 2020 happened, and everything changed.
The pandemic didn’t just disrupt daily life — it fundamentally restructured where and how people wanted to live. Remote work became mainstream overnight. Families fled expensive coastal markets. People prioritized space, affordability, and quality of life over proximity to offices.
Colorado Springs checked every box.
October 2020 numbers revealed the beginning of the surge:
- Median price: $383,447 (14.5% increase over October 2019)
- Sales: 1,732 homes (19.6% increase)
- Active inventory: 881 homes (down 54.6% from October 2019)
For the first time in years, inventory cratered while demand exploded. The months of supply dropped to just 0.5 months — meaning if no new homes came on the market, everything available would sell in two weeks.
This wasn’t a market. It was a feeding frenzy.
By October 2021, the situation intensified:
- Median price: $446,000 (16.3% increase over October 2020)
- Sales: 1,641 homes
- Active inventory: 1,048 homes (still extremely low)
- Months of supply: 0.6 months
Buyers were writing offers sight unseen. Appraisal gaps became standard. Escalation clauses were mandatory. Inspection contingencies were waived. The market had gone from competitive to absolutely cutthroat.
October 2022 marked the peak — and the turn:
- Median price: $465,000 (4.3% increase over October 2021)
- Sales: 1,100 homes (down 33% from October 2021)
- Active inventory: 2,645 homes (up 152% from October 2021)
- Months of supply: 2.4 months
Something had shifted. The Federal Reserve had begun aggressively raising interest rates to combat inflation. Mortgage rates, which had been below 3% in 2021, rocketed toward 7%. Suddenly, buyers’ purchasing power evaporated.
The market didn’t crash — it froze.
The Correction Phase (2023-2025)
The past three years have been about correction, not collapse.
October 2023 showed a market searching for equilibrium:
- Median price: $485,000 (4.3% increase over October 2022)
- Sales: 851 homes (down 22.6% from October 2022)
- Active inventory: 2,505 homes
- Months of supply: 2.9 months
Prices continued to edge upward, but barely. Sales volume plummeted. Sellers who needed to move adjusted their expectations. Those who didn’t need to sell simply stayed put, creating a standoff between buyers waiting for lower prices and sellers hoping for a return to 2021 conditions.
Neither side got what they wanted.
October 2024 brought modest recovery:
- Median price: $475,000 (down 2.1% from October 2023)
- Sales: 998 homes (up 17.3% from October 2023)
- Active inventory: 3,394 homes (up 35.5% from October 2023)
- Months of supply: 3.4 months
For the first time since the pandemic began, prices actually declined year over year. Not dramatically — just 2.1% — but the psychological shift was significant. Sellers realized the 2021 party was over. Buyers started cautiously re-entering the market.
Which brings us to October 2025:
- Median price: $473,500 (down 0.3% from October 2024)
- Sales: 876 homes (down 12.2% from October 2024)
- Active inventory: 3,918 homes (up 15.4% from October 2024)
- Months of supply: 4.5 months
We’re now sitting in balanced market territory — something we haven’t experienced since before the pandemic.
What the 10-Year Data Really Shows
Looking at the full decade, here’s the truth about Colorado Springs home values:
From October 2015 to October 2025:
- Median price went from $234,900 to $473,500
- That’s an increase of 101.6% — essentially doubling
- Average price went from $263,584 to $543,590
- That’s an increase of 106.2%
Breaking it down by era:
- 2015-2019: 42% appreciation over 5 years (healthy, sustainable)
- 2019-2022: 39% appreciation in just 3 years (unsustainable surge)
- 2022-2025: Essentially flat with minor fluctuations (correction/normalization)
The takeaway? We experienced a decade’s worth of appreciation compressed into three pandemic years. Since 2022, the market has been digesting those gains, searching for a new equilibrium that reflects actual buyer purchasing power rather than FOMO-driven hysteria.
The Big Picture: Prices Are Easing Because Affordability Is Stretched
One of the biggest insights from this month’s update is the gap between home values and wages.
From 2019 to today, home values in Colorado Springs have risen dramatically — in some areas, close to 70%. Wages have not kept pace.
When the cost of housing increases faster than people’s paychecks, something has to give. The market doesn’t crash — it corrects. And that’s where we are today.
Prices are easing not because demand is gone, but because buyers simply cannot stretch any further.
The reality is that a home is only worth what someone is willing — and able — to pay for it. And right now, that number is lower than what many sellers hoped for during the peak years.
What Drove the 2020-2022 Surge?
Understanding why prices exploded helps explain why they’re now stabilizing.
Remote Work Revolution When companies went remote, geography became optional. People who were stuck in expensive coastal markets suddenly realized they could live anywhere — and many chose Colorado Springs. Lower cost of living, no state income tax on military retirement, access to outdoor recreation, and mountain views made the Springs incredibly attractive.
Historic Low Interest Rates Mortgage rates dropped below 3% in 2021. A buyer who could afford a $400,000 home at 5% could suddenly afford a $500,000+ home at 2.75%. That expanded buying power flooded into home prices.
Limited Supply Colorado Springs has geographic constraints. We’re bordered by military installations, national forests, and challenging terrain. We can’t just sprawl infinitely. When demand surged, supply couldn’t keep up.
Migration Patterns California, Washington, and other high-cost states saw exodus. Colorado Springs became a top destination for families seeking affordability and quality of life. This wasn’t temporary — it represented a fundamental demographic shift.
Investor Activity Institutional investors and individual landlords saw opportunity. Cash buyers with no financing contingencies competed directly with families, driving prices even higher.
All of these factors created a perfect storm. But storms don’t last forever.
Interest rates climbed. Remote work policies tightened. Affordability hit a breaking point. The market didn’t crash — it simply ran out of buyers willing to pay increasingly inflated prices.
So… Is the Colorado Springs Housing Market Crashing?
Short answer: No. Not even close.
A crash requires:
- A 20%–30% drop in home values
- A wave of distressed sellers
- A massive oversupply of housing
We have none of that.
Instead, we have:
- A leveling of prices
- A cautious buyer pool
- Sellers who need to sell
- More inventory than we’ve had in years
- Longer days on market
- Negotiation power shifting toward buyers
This is what a market correction looks like — not a collapse.
Even with the recent softness, home prices are still roughly double what they were a decade ago. We’re not erasing gains — we’re simply pausing after an unprecedented run-up.
Why This Might Be Your Best Opportunity to Buy
If you’ve been waiting for the right time, this might be it.
Here’s why:
✔ Sellers Are Offering Concessions Again
Closing costs, rate buydowns, inspection credits — all of it is back on the table. During 2020-2022, sellers laughed at requests for concessions. Today? They’re actively offering them to attract serious buyers.
✔ Fewer Bidding Wars
You no longer have to go $50K over list just to compete. Multiple offer situations still happen on well-priced homes, but they’re the exception rather than the rule.
✔ Homes Are Sitting Longer
Which means buyers have room to negotiate, evaluate, and choose. Schedule a second showing. You can think overnight. You can have your inspector actually inspect rather than rubber-stamp a waived contingency.
✔ Rates May Fluctuate — But Prices Are Already Stabilizing
If rates drop in the future, buyer demand will spike again. That could push prices back up. Buying now means locking in today’s prices before the next wave of demand arrives.
✔ Current Sellers Are Serious Sellers
Nobody is casually listing a home right now. They’re motivated. Whether it’s a job relocation, a growing family, a divorce, or a downsizing retiree — these sellers need to move. That motivation translates into flexibility and negotiation opportunities.
For buyers who were discouraged before: This is a rare window where you have leverage, choice, and negotiating power — all at the same time.
Strategic Buyer Playbook: How to Win in Today’s Market
Having options is great — but only if you know how to use them. Here’s how smart buyers are navigating October 2025:
1. Get Pre-Approved (Not Just Pre-Qualified)
Pre-qualification is a rough estimate. Pre-approval means a lender has verified your income, assets, credit, and employment. Sellers want to see proof you can actually close. In a market with fewer buyers, being the one who can definitely perform gives you serious leverage.
2. Understand Rate Buydowns
Here’s a strategy many buyers don’t consider: negotiating for the seller to buy down your interest rate.
Instead of asking for a $10,000 price reduction, ask the seller to contribute $10,000 toward buying down your rate. That money could reduce your interest rate by 0.5% to 1% for the life of the loan — or provide a temporary buydown that lowers your rate for the first few years.
Example: On a $500,000 loan, a 1% rate reduction saves roughly $300/month. Over 30 years, that’s $108,000 in savings — far more valuable than a $10,000 price cut.
Rate buydowns can be especially powerful if you plan to refinance when rates drop. You get immediate monthly payment relief while building equity.
3. Ask About Assumable Mortgages
If the seller has a VA or FHA loan with a low interest rate from 2020-2021, that loan might be assumable. This means you can literally take over their existing mortgage — including their 2.75% or 3.25% interest rate.
Not all loans qualify. Not all buyers qualify. But if the stars align, assuming a low-rate mortgage can be a game-changer. It’s worth asking about, especially on homes purchased between 2020-2022.
4. Negotiate Closing Costs
Sellers are willing to cover closing costs to get deals done. Depending on your loan type, sellers can contribute 3% to 6% of the purchase price toward your closing costs.
Reducing your upfront cash requirement by $10,000-$15,000 makes homeownership more accessible — especially for first-time buyers stretching to afford entry.
5. Don’t Waive Inspections
During the frenzy, buyers waived inspections to be competitive. That’s no longer necessary — and it’s terrible risk management.
Always get a professional home inspection. If issues surface, you can:
- Negotiate repairs
- Request a credit at closing
- Walk away if the problems are severe
You’re making a massive investment. Know what you’re buying.
6. Understand That Concessions Beat Price Reductions
A seller might resist dropping their price by $15,000, but they’ll agree to $15,000 in concessions. Why?
Psychology. The listing price is public. The sale price is public. Concessions? Those are private. Sellers protect their perceived home value while still giving you financial relief.
As a buyer, focus on total cost and monthly payment — not just the purchase price. A slightly higher purchase price with significant concessions can be a better deal than a lower price with zero help.
A Quick Look at Condo & Townhome Data
While the primary focus has been on single-family homes, the condo and townhome segment tells an important story.
New Listings
- Up 13.5% month over month (170 to 193)
- Down 2.5% year over year
Sales
- Down 9.1% month over month (143 to 130)
- Down 18.2% year over year
Prices
- Average price: $361,871 (up 2.4% year over year)
- Median price: $319,500 (down 4.6% year over year)
Active Inventory
- 640 homes available
- 4.9 months of supply
The condo and townhome segment is experiencing even more pressure than single-family homes. Part of this stems from rising insurance deductibles across Colorado, particularly for properties with HOAs. Buyers considering condos or townhomes should work closely with their lender and insurance provider to understand how premiums and deductibles impact overall affordability.
That said, this segment offers more affordability for first-time buyers and downsizers. With proper due diligence on HOA health, reserve funds, and upcoming assessments, condos and townhomes can provide excellent value in today’s market.
What Sellers Need to Know Right Now
Let’s be clear: sellers can absolutely still win in this market. But winning in the October 2025 Colorado Springs housing market requires a different approach than October 2021.
Here’s what matters most:
1. Pricing: The Make-or-Break Decision
Price your home right at market value from day one.
Not 5% above market hoping to negotiate down. Not based on what your neighbor got in 2022. Not based on what you think your improvements are worth.
At. Market. Value.
The market is brutally efficient right now. Overpriced homes sit. Homes that sit get stigmatized. Stigmatized homes sell for less than they would have if priced correctly from the start.
Work with your agent to analyze:
- Recent comparable sales (closed in the past 30-60 days)
- Current competing inventory
- Average days on market for similar homes
- Price per square foot trends in your specific area
Price is determined by what a buyer is willing to pay — not by your financial needs, emotional attachment, or Zillow’s estimate.
2. Stop Looking at Zillow
Zillow’s “Zestimates” can be wildly inaccurate. These algorithms don’t account for:
- Condition and updates
- Specific location advantages or disadvantages
- Recent comparable sales
- Market momentum
- Buyer sentiment
Zillow’s estimate might say your home is worth $525,000. The market might say it’s worth $485,000. The market is always right.
Trust local data. Trust your agent’s analysis. Don’t let an algorithm cost you thousands of dollars and weeks on market.
3. Understand That the Market Changes Rapidly
What’s true today might not be true in 30 days. The market is fluid.
If your home isn’t generating showings within the first two weeks, something is wrong — usually the price. Waiting and hoping doesn’t work. The longer your home sits, the weaker your negotiating position becomes.
Be prepared to adjust quickly based on feedback, showing activity, and market conditions.
4. Remove Emotional Attachment
This is hard. Your home holds memories. You’ve invested time, money, and energy into improvements.
But buyers don’t care about your memories. They care about whether the home meets their needs at a price that fits their budget.
You’re not selling your home — you’re selling a house to someone else. Once you mentally separate yourself from the property, pricing and negotiation become much easier.
5. Condition Matters More Than Ever
When buyers had no options, they overlooked flaws. Today, they have choices — and they’re comparing your home directly to others.
Here’s what makes a difference:
Clean and Clutter-Free Remove personal items, excess furniture, and anything that makes spaces feel cramped. Buyers need to envision their life in the home — not navigate around yours.
Fresh Paint Neutral colors make spaces feel larger and cleaner. Dated colors or scuffed walls signal deferred maintenance.
Flooring Clean or replace carpet if it’s worn or stained. Buyers will mentally deduct thousands if they see flooring they’ll have to replace immediately.
Curb Appeal You get one chance at a first impression. Buyers form opinions within seconds of pulling up. Mow the lawn. Trim bushes. Power wash the driveway. Paint the front door. Add simple landscaping.
Small investments in presentation can yield massive returns in final sale price.
6. Be Flexible on Concessions
If a buyer requests closing costs, a rate buydown, or repair credits, seriously consider it.
You can say no — but then the deal might fall apart, and you’ll be back to square one. Weeks will pass. Your home will sit longer. The next buyer will offer even less.
Smart sellers understand that closing a deal with reasonable concessions is better than holding out for perfect terms that never materialize.
7. Professional Marketing Still Matters
Your home needs professional photography, a detailed listing description, and multi-platform exposure. Virtual tours and video walkthroughs help buyers narrow their options before scheduling showings.
Weak marketing means fewer showings. Fewer showings mean fewer offers. Fewer offers mean less competition and lower prices.
This is not the time to cheap out on presentation.
Big Picture: A Complicated but Opportunity-Filled Market
Consumer sentiment is low. Prices are easing but not plummeting. Inventory is growing. Rates are unpredictable. And affordability challenges weigh on many families.
But in the middle of all that?
A window of opportunity for buyers who felt locked out for years.
Whether you’re buying, selling, or relocating, the key is understanding the market — and partnering with a team that studies this data every day.
The housing market in Colorado Springs has been through wild swings over the past decade. From steady, sustainable growth through 2019, to explosive pandemic-driven surge, to today’s correction and rebalancing — we’ve experienced a full market cycle compressed into just a few years.
What we’re seeing now isn’t scary. It’s normal, healthy, and it’s what happens when markets overheat and then search for equilibrium.
For buyers: this is the most balanced, navigable market since 2019. You have choices, leverage, and time to make smart decisions.
For sellers: you can still achieve strong results — but only with realistic pricing, proper presentation, and flexibility on terms.
The data doesn’t lie. The trends are clear. And the opportunity is real.
Final Thoughts
The Colorado Springs housing market is shifting — and for the first time in a long time, buyers have real options. With inventory up, prices softening, and sellers offering concessions again, this season offers meaningful opportunity for anyone hoping to make Colorado Springs feel like home.
Whether you’re exploring neighborhoods, relocating to the area, or trying to make sense of all the data, our team is here to help.
Helping You Make Colorado Springs Feel Like Home.
If you’re thinking about moving to or around Colorado Springs, we’d love to help.
👉 Click here to book a consultation.
©Copyright 2025 REALTOR® Services Corp. All rights reserved. Unauthorized reproduction is prohibited. Based on information from the REALTOR® Services Corp (“RSC”) for the period October 2015 through October 2025. RSC information may not reflect all real estate activity in the market and is provided as is without warranty or guaranty.
About The Author
The team at My Front Range Living are a group of full time real estate experts serving Colorado Springs, El Paso County and the surrounding areas. Their knowledge of the local community and experience in the industry provide you incomparable value when buying or selling a home. With several years of experience in helping out of state buyers and sellers, they are the go-to team when it comes to relocating and helping Colorado feel like home. Click Here to book a consultation with us.
Even if you’re looking for an agent in another city or state, the My Front Range Living team has a network of experts that can connect you with the right professional.
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