🏡 Are Colorado Springs House Prices Falling?

Here’s What the May 2025 Market Update Really Says

If you’ve been sitting on the sidelines waiting for the Colorado Springs real estate market to shift—wondering if Colorado Springs home prices are finally falling—you’re not alone. Buyers are hoping for a break, sellers are watching nervously, and everyone wants to know:

Have we finally hit a tipping point?

The answer, as of May 2025, is: It’s complicated.

In this deep dive into the latest Colorado Springs housing data, we’re unpacking exactly what’s going on with inventory, home prices, and days on market. If you’re thinking about buying, selling, or relocating to the Pikes Peak region, this update will give you the clarity you need to move forward confidently.

📊 A Quick Snapshot of the May 2025 Colorado Springs Housing Market

Every month, we take a close look at the numbers from the Pikes Peak MLS (PPMLS), which includes single-family homes across the area. This month, a few key trends stand out:

• Inventory is climbing—and not just a little.

• Prices are shifting—but not crashing.

• Homes are selling faster—yes, faster.

• And yes, we may be entering a buyer’s market for the first time in a long while.

Let’s dig into the data and what it means for you.

🏘️ Inventory Is On the Rise

Inventory is often the first sign of a market turning. And in May 2025, we saw a noticeable increase in available homes:

• Active Listings in May 2025: 3,671

• April 2025: 3,117

• May 2024: 2,645

That’s an increase of over 1,000 homes year-over-year—a 38% jump. Even month-over-month, inventory rose by more than 500 homes.

But here’s what really makes this significant:
We haven’t seen this many homes on the market since September 2014. That’s nearly 11 years ago.

This kind of inventory growth gives buyers more power and more options—two things that have been sorely missing in recent years.

💰 Are Colorado Springs Home Prices Falling?

Let’s get straight to the question that brought you here.

The short answer is: Not dramatically, but the winds are shifting.

Here’s what the numbers say:

• Average Sales Price:

  • May 2025: $566,300

  • April 2025: $570,000

  • May 2024: $557,000

• Median Sales Price:

  • May 2025: $490,000

  • April 2025: $490,000

  • May 2024: $499,000

What does that mean?

• The average price is slightly down from last month, but still up year-over-year.

• The median price is flat month-over-month, but down from last year.

So yes, we’re seeing some softening, but not the kind of drop that signals a full-blown correction. Prices are leveling off—not falling off a cliff.

⏱️ Homes Are Selling Faster—Wait, What?

Here’s a twist that might surprise you: despite rising inventory, homes are selling faster than they were just a month ago.

• Days on Market (DOM) in May 2025: 41

• DOM in April 2025: 49

• DOM in May 2024: 36

That’s an 8-day improvement from last month, even though we’re slightly slower than this time last year.

So, how can homes be selling faster when inventory is up?

Because buyers are active—especially when they see a well-priced, move-in-ready home. Those listings are going quickly, while others may sit. It’s not about every home selling fast; it’s about the right homes selling fast.

🔄 Are We in a Buyer’s Market Now?

We’re getting close, and in some price ranges, we may already be there.

This market looks a lot more balanced than what we’ve seen in recent years—and in some areas, the balance is tipping in the buyer’s favor.

Here’s why:

• More homes to choose from

• Flat or slightly declining prices

• Homes lingering longer unless they’re priced right

• More room for negotiation and seller concessions

This doesn’t mean sellers can’t succeed—but it does mean they need to be strategic.

💡 What’s Behind the Shift?

Several factors are influencing these changes:

1. Higher Mortgage Rates

Rates have been hovering between the high 6s and low 7s. That affects both affordability and seller motivation. Many homeowners are sitting tight, unwilling to give up their lower mortgage rates.

2. Economic Uncertainty

Between inflation, the cost of living, and talk of a slowing national economy, many would-be buyers are taking a cautious approach. People are still moving—but they’re not rushing.

3. Seasonal Supply

Spring and early summer always bring a wave of new listings. Some of the increase in inventory is seasonal—but paired with slower buyer momentum, it feels more dramatic than usual.

🛒 What This Means for Buyers

If you’ve been waiting for the crazy bidding wars to cool down—your moment may be here.

Buyers now have:

• More options

• Less competition

• Better negotiating power

Many sellers are offering concessions—closing cost credits, interest rate buy downs, or repairs. You also have time to think before writing an offer. Imagine that!

But a word of caution: Don’t assume every listing is up for grabs. Some move-in-ready homes that are priced well are still flying off the market in under two weeks.

Pro tip: Work with a real estate agent who knows the local market well and can help you identify which homes are worth pursuing and which ones might be overpriced.

📦 What This Means for Sellers

It’s still a good time to sell—but your approach needs to change.

Gone are the days of listing on Thursday and having 10 offers by Sunday.

Today’s buyers are pickier. They want value, condition, and time to think it over. They’re not waiving inspections, and they’re not throwing money at anything with a roof.

To sell quickly and for top dollar, you need to:

• Price it right from day one

• Stage your home to show it at its best

• Market strategically, with professional photos and exposure

Homes that are well-prepped and well-priced are still selling—and selling fast. But homes that are overpriced or underwhelming? They’re sitting.

🔍 Which Homes Are Moving Fast?

Not all homes are moving at the same pace—and it’s not just about price brackets. Properties that are well-maintained, thoughtfully priced for today’s market, and located in desirable areas are attracting strong interest and often selling quickly. Meanwhile, homes with price tags stuck in 2021 are sitting longer as buyers—who are more informed and cautious than ever—wait for price reductions. In this market, realistic pricing and presentation are key to getting results.

Understanding the micro-trends within our market is key. Your strategy should depend on where your home falls in terms of location, price, and condition.

🧭 Is This the Start of a Bigger Correction?

It’s fair to wonder: is this just the beginning?

Right now, there’s no sign of a crash.

This isn’t 2008. Lending standards are tighter, and most homeowners have equity. Foreclosures are low. And Colorado Springs remains a strong market due to:

• Steady job growth

• Military presence

• High quality of life

• In-migration from other states

What we’re seeing is a correction, not a collapse. It’s a move toward a healthier, more sustainable market. And in the long term, that’s good news for everyone.

📦 Relocating to Colorado Springs? You’re Not Alone.

Colorado Springs continues to attract people from across the country, thanks to its outdoor lifestyle, strong economy, and relative affordability (compared to cities like Denver or Austin).

If you’re considering making a move, this market offers more opportunities than we’ve seen in years.

We created a Free Relocation Guide to help you get started. It’s full of information about neighborhoods, schools, lifestyle tips, and what to expect when moving to the Springs.

👉Download the Colorado Springs Relocation Guide

💬 Final Thoughts

So, are Colorado Springs home prices falling?

Not quite—but they’re flattening. And that, in itself, marks a major shift.

If you’re a buyer, this is the most balanced market we’ve seen in years. You’ve got options, room to negotiate, and a bit more breathing room.

If you’re a seller, you can still make a strong move—but you need to do your homework, price realistically, and put in the prep work.

We’ll continue to watch the data and keep you updated. In the meantime, if you have questions about your specific situation—whether you’re buying, selling, or just exploring—we’re here to help.

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.

🏡 Moving to Colorado Springs? Download our FREE Colorado Springs Relocation Guide!

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