Colorado Springs Housing Market Shows Signs of Stabilization
The Colorado Springs housing market is showing signs of stabilization after two years of declining sales volume, according to the latest report from the Pikes Peak Association of Realtors. The median home price in El Paso County held steady at $465,000 in March, unchanged from February and down just 2 percent from the peak reached in mid-2024.
Active listings have increased to 3,200 homes, the highest inventory level since 2019 and a welcome shift for buyers who have faced intense competition in recent years. Realtor Association president Carmen Vasquez said the increased supply is giving buyers more negotiating power, with seller concessions on closing costs becoming more common and days on market averaging 38 days compared to 12 days during the 2022 frenzy.
New construction continues to play a significant role in the market, with 1,400 building permits issued in El Paso County during the first quarter of 2026. Developments in the eastern plains communities of Falcon, Peyton, and Calhan are attracting first-time buyers with homes starting in the mid-$300,000 range, significantly below the county median. Several large planned communities are also moving forward in the Banning Lewis Ranch area.
Despite the cooler market, economists note that Colorado Springs remains one of the more affordable mid-size metro areas along the Front Range. Mortgage rates, currently averaging 5.8 percent for a 30-year fixed loan, have contributed to the slower pace but remain historically moderate. Vasquez expects a gradual increase in activity through the summer as buyers adjust to the current rate environment.