Is the Colorado Springs market a buyer’s or seller’s market right now?

Table of Contents

• What the Current Data Actually Shows
• Inventory: The Variable That Changed Everything
• Interest Rates and Buyer Affordability
• Neighborhood-Level Conditions Vary Significantly
• The Military Relocation Factor
• New Construction and Its Effect on Resale Inventory
• So: Buyer's Market, Seller's Market, or Balanced?
• What This Means If You Are Buying or Selling Now

The Colorado Springs market has been one of the most-watched housing markets along the Front Range for the past several years. After a prolonged run that strongly favored sellers, conditions have been shifting. The data from late 2026 tells a more nuanced story: this is no longer a straightforward seller’s market, but it is not a full buyer’s market either. Understanding exactly where things stand requires looking at inventory, pricing, days on market, and the neighborhood-level dynamics that city-wide averages tend to obscure.

What the Current Data Actually Shows

As of September 2026, Colorado Springs home values on Zillow show a median list price of $458,333 and a median days-to-pending figure of 35 days. Those two numbers together tell you a great deal. Thirty-five days to pending is not a hot seller’s market; in a true seller’s market, well-priced homes routinely go under contract in under ten days.

For historical comparison, back in late 2023 and into 2024, the market was tighter. The median sales price reached $480,000 as of September 2024, according to the Colorado Springs Housing Report, reflecting a 2.2 percent year-over-year increase from September 2023. That price appreciation has moderated since then, which is consistent with a market finding a new equilibrium.

Key takeaway: A 35-day median time to pending and moderating price growth signal that the Colorado Springs market has moved out of seller’s territory and into a more balanced zone. Buyers have more time to think; sellers still need to price with precision.

Inventory: The Variable That Changed Everything

The single biggest structural shift in the Colorado Springs market over the past two years has been inventory. The Pikes Peak Association of REALTORS reported a 10 percent year-over-year increase in housing inventory as of August 2024. That trend has continued into 2026, giving buyers a level of selection they simply did not have during the 2020-2022 frenzy.

More inventory does not automatically hand buyers the upper hand, but it does change the negotiating dynamic. When a buyer has four or five comparable options in the same price range, sellers cannot afford to overprice or skip pre-listing preparation. Homes that are not priced correctly are sitting, and some are seeing price reductions.

What Rising Inventory Means in Practice

For buyers, increased inventory means fewer situations where you are competing against five other offers on the same weekend. Contingencies are back on the table in many price ranges. Inspection objections are being negotiated rather than waived outright.

For sellers, the calculus has changed. Condition and pricing matter more than they did three years ago. A home that would have sold in a weekend with minimal preparation in 2021 may now sit for six weeks if it is not priced to reflect current absorption rates.

Interest Rates and Buyer Affordability

Mortgage rates have played a significant role in shaping demand throughout this cycle. For historical context, the average 30-year fixed rate was approximately 7.0 percent as of October 2024, according to Freddie Mac. Elevated rates have compressed purchasing power for a large segment of buyers, particularly first-time buyers and those without significant equity to roll from a previous sale.

The practical effect is a bifurcated buyer pool. Cash buyers and move-up buyers with substantial equity from prior purchases have remained active. Rate-sensitive buyers, especially those targeting the $350,000-to-$450,000 range, have pulled back or been priced out of certain neighborhoods entirely.

Where Rate Sensitivity Is Highest

Rate sensitivity is not uniform across the Colorado Springs market. It tends to cluster in specific price bands and areas:

• Entry-level homes in the Powers Corridor and Fountain, where first-time buyers and military families dominate demand
• Townhomes and paired homes across Briargate and Wolf Ranch, which attract buyers stretching their budgets
• New construction in Banning Lewis Ranch, where builder incentives and rate buydowns have become a standard part of the sales conversation

At the upper end of the market, in neighborhoods like the Broadmoor or Flying Horse, rate sensitivity is lower. Many transactions in those price ranges involve larger down payments or cash, which insulates those sub-markets from rate-driven demand swings.

Neighborhood-Level Conditions Vary Significantly

City-wide averages are a starting point, not a decision-making tool. The Colorado Springs market is not monolithic. Conditions in Monument look different from conditions in Fountain, and conditions in Broadmoor look different from both.

Markets Within the Market

A few patterns worth noting as of fall 2026:

• Northgate and Flying Horse: Still seeing solid demand from executives, military officers, and out-of-state relocators. Days on market are shorter than the city average, and price reductions are less common.
• Powers Corridor: Active but price-sensitive. Buyers are negotiating more aggressively, and sellers who overprice are experiencing longer hold times.
• Black Forest and Peyton: Rural acreage properties attract a specific buyer who moves slowly and deliberately. These homes have always taken longer to sell, and that remains true. The pool is smaller but the buyers are serious.
• Fountain: Proximity to Fort Carson keeps demand steady. Military relocation buyers are a consistent presence, and VA loan transactions make up a meaningful share of closings in this area.
• Monument and Woodmoor: The Tri-Lakes corridor continues to attract buyers who want more space and a quieter setting while staying within commuting distance of Colorado Springs employers and the Air Force Academy.

The Military Relocation Factor

Colorado Springs has a structural demand driver that most markets do not: four major military installations generating a steady stream of PCS orders year-round. Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the Air Force Academy collectively produce thousands of relocation transactions annually, regardless of broader market sentiment.

This demand is not seasonal and it is not rate-driven in the same way civilian demand is. Service members on orders have a timeline dictated by the military, not by mortgage rate trends. That creates a baseline of transaction activity that buffers the Colorado Springs market against the kind of sharp demand drops seen in markets without a similar anchor.

VA loan usage is particularly high in this market. Buyers using VA financing have access to zero-down purchasing, which partially offsets the affordability pressure created by elevated rates. Sellers who understand VA loan mechanics and are willing to work with VA buyers have access to a deep, motivated buyer pool that many listing agents underestimate.

New Construction and Its Effect on Resale Inventory

New home construction permits in El Paso County increased by 3 percent in Q3 2024 compared to Q3 2023, according to the Pikes Peak Regional Building Department. Builder activity has continued to add inventory, particularly in the eastern and northern corridors of the metro area.

New construction competes directly with resale homes in the $450,000-to-$600,000 range. Builders have been offering meaningful incentives, including rate buydowns, closing cost contributions, and design center credits. Resale sellers in that price range are competing against those incentives, which is a dynamic that did not exist to the same degree two or three years ago.

Buyers considering new construction should weigh the incentives against the reality that new builds often sit in developing neighborhoods with fewer established amenities. Resale homes in mature communities like Briargate offer mature landscaping, established schools, and shorter commutes to employment centers, factors that hold long-term value.

So: Buyer’s Market, Seller’s Market, or Balanced?

Based on the data available through late 2026, the Colorado Springs market sits in balanced-to-slightly-buyer-favorable territory in most price ranges. The evidence for that assessment:

• Median days to pending of 35 days indicates buyers have time to conduct due diligence
• Inventory levels are up significantly from the 2021-2022 lows
• Price growth has moderated, with the median list price sitting below the 2024 peak sales price
• Price reductions are appearing on overpriced listings across multiple neighborhoods
• Sellers are negotiating on repairs and concessions in ways they were not two years ago

That said, calling it a buyer’s market across the board would be inaccurate. Well-priced homes in desirable neighborhoods still move. Multiple-offer situations still occur, particularly in the sub-$450,000 range when a home is in good condition and priced correctly. The market rewards preparation and strategy on both sides of the transaction.

What This Means If You Are Buying or Selling Now

For buyers, the current environment is the most favorable entry point in several years. More inventory, less competition, and the ability to negotiate contingencies back into contracts are real advantages. That does not mean every home is a deal; overpriced listings are still overpriced, and buying a poorly located property at a slight discount is still a poor decision.

If you are ready to start searching, the Vantegic Buyer’s Guide walks through the full process, including how to evaluate neighborhoods, structure offers in a balanced market, and use VA financing effectively if you qualify.

For sellers, the message is straightforward: pricing discipline and pre-listing preparation are non-negotiable in this environment. The days of listing at an aspirational number and waiting for the market to catch up are largely over. Sellers who price accurately and present their homes well are still achieving strong results. Those who do not are sitting on the market and eventually reducing.

Start with an accurate read on your home’s current value. The home valuation tool provides a data-grounded starting point, and the Vantegic Seller’s Guide covers the full preparation and pricing process in detail.

After more than 22 years working specifically in the Pikes Peak region and over 1,200 transactions closed, my read on this market is that it rewards preparation and punishes complacency, on both sides of the table. If you want a direct conversation about your specific situation, reach out to the Vantegic Home Team at HomeSmart. The number is (719) 302-0602.

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