The Colorado Springs Housing Market in 2025

The housing market in Colorado Springs for 2025 has seen some unique changes. As of mid-year, we’re approaching a delicate balance between a buyer’s market and a seller’s market—but with a tilt in favor of buyers. Inventory levels are increasing while buyer activity remains relatively flat. This means more opportunities for well-prepared home buyers.

Inventory levels are up, but but buyer activity isn't. Right now, Colorado Springs is sitting at about 3.3 months of housing inventory. That means if no new homes were listed, everything currently for sale on the market would be sold in just over three months. A balanced market typically falls between four and six months of inventory, so we’re getting close to buyer-friendly territory.

Buyers are gaining leverage, especially on homes that need updates or are priced too optimistically. Move-in-ready homes with updated kitchens, bathrooms, and tasteful finishes are still selling quickly, often within two weeks. Homes with deferred maintenance however are sitting on the market for 40 to 60 days, or longer, especially if overpriced.

Price growth has slowed but not stopped. Home prices in Colorado Springs are up about 2% year-over-year, depending on the neighborhood. While that’s a far cry from the double-digit increases of 2020–2022, it still signals moderate appreciation. That said, some neighborhoods are seeing stagnant or even slightly declining prices due to lower demand or specific features like HOA fees, which add to buyers' monthly payment.

Condos in Colorado Springs are actually not selling very well because of the higher HOA costs. Keeping a low monthly payment is a priority for most buyers right now.

If you bought your home after 2020 and need to sell now, chances are you haven’t built up enough equity to break even, especially if you paid top dollar during the 2021 frenzy.

Seasonal trends are still in play. Historically, September and October bring the highest levels of inventory as sellers try to sell their homes before the holidays. This makes it a great time for buyers to negotiate better pricing or ask for seller concessions, especially on homes that have lingered on the market. On the other hand, summer remains the best season to list a home if you're looking to maximize your sale price and buyer exposure.

The Colorado Springs housing market still has strong fundamentals. Despite the national uncertainty, rising interest rates, political division, and a cooling market, the Colorado Springs housing market in 2025 remains relatively insulated. Our city benefits from:

• A strong military presence and constant PCS moves
• High demand for outdoor access and a dry climate
• A growing population of high-income buyers
• New developments, including a 27-story luxury apartment tower downtown

Realtor.com forecasts that the average home price in Colorado Springs could reach $1 million within the next decade. Whether or not that happens, it’s clear that the Springs continues to attract people with solid incomes and long-term plans to stay.

Interest Rates and Incentives: What Buyers Should Know

Interest rates have hovered around 6.5% to 7%, which has kept some buyers on the sidelines. But if you're ready to buy, there are two standout opportunities:

1. New Construction Incentives: New home builders are offering up to $60,000 in incentives to buy down interest rates or cover closing costs. This is especially common in neighborhoods competing with resale inventory.

2. Assumable Loans: Buyers can sometimes take over low-interest FHA, VA, or USDA loans, provided they pay the difference between the seller’s mortgage balance and the sale price. This can result in a much lower monthly payment than purchasing at today’s market rate.

These are the David Weekley new homes in Colorado Springs. I also put together a quick link list for all new homes that home builders are building in Colorado Springs. If you want that list, let me know!

Why Some Homes Aren’t Selling:

Not all listings are moving quickly, even if they seem competitively priced. A client in Loveland recently struggled to sell a well-maintained home listed below market value. After I did some researching in the neighborhood, spoke with local agents, and analyzed similar properties, it looks like the HOA cost is making it harder to sell those homes.

This highlights a critical point for sellers: pricing isn’t everything. Neighborhood desirability, market timing, and competition from new construction all play major roles.

Advice for Buyers and Sellers in Mid-2025

If you’re a buyer, you have negotiating power right now—especially on homes that aren’t updated or have been sitting on the market. Consider new builds or look into assumable loans if you're concerned about interest rates.

If you’re a seller, summer is your window to get top dollar. After October, buyer activity drops off, and concessions or price reductions become more common. Make sure your home is move-in ready and priced correctly—or be prepared to negotiate.

And for both sides: don’t rely on speculation. Some expect home prices to fall; others think the worst is over. The truth is, the Colorado Springs housing market has historically outperformed the national market, and no one has a crystal ball. If the timing is right for your life, it may also be right for your real estate goals.

Compared to national trends, the Colorado Springs housing market in 2025 continues to stand out. Thanks to military demand, strong outdoor lifestyle appeal, and a resilient local economy, this market tends to stay steady even when others cool down.

Whether you're looking to buy your first home, upsize, downsize, or invest, there's opportunity in Colorado Springs, especially if you understand the seasonal shifts and leverage the right incentives.

About the Author:
Kevin James Bond is a licensed REALTOR® with RE/MAX Real Estate Group in Colorado Springs. With 9 years of experience helping clients buy and sell homes across Colorado Springs, he provides practical, honest advice to guide you through every step of the process.