Inventory Surges to Post-Pandemic High, But Buyer Demand Weakens Amid Economic Uncertainty

April brought a significant shift to the U.S. housing market with a 30.6% increase in active listings compared to last year—the highest April inventory level since the early pandemic days. However, this jump in supply hasn’t yet enticed buyers back, with pending home sales dropping 3.2% year-over-year due to rising mortgage rates and economic uncertainty.

Key National Trends:

• 🏡 Inventory: 959,251 homes actively listed (up 30.6% YoY).

• 💸 Price Reductions: 18% of listings had price cuts—a multiyear April high.

• 📉 Pending Sales: Down for the fourth straight month, signaling a sluggish spring season.

• 🏷️ Median List Price: $431,250 (virtually flat YoY).

• 📈 Affordability Gap: Buyers now need $114,000/year income to afford a median-priced home, up 70% from 5 years ago.

Economic Headwinds Impacting Buyers:

• A renewed rise in mortgage rates (average: 6.73% in April).

• Consumer confidence fell sharply following President Trump’s April tariff announcement.

• GDP shrank by 0.3% in Q1 2025; economists warn the U.S. is near recession territory.

• Ongoing affordability concerns: median list prices are up 37% from 2019, while incomes haven't kept pace.

Quote from Danielle Hale, Realtor.com Chief Economist:
“Sellers are becoming more flexible on pricing, and while higher mortgage rates are weighing on demand, the silver lining is that the market is starting to rebalance. This could create opportunities for buyers who are prepared.”

🏔️ Colorado Springs Market (April 2025)

• 📌 Active Listings: 2,132 homes (up 52% YoY)

• 🆕 New Listings: 1,470 (up 25.5% YoY)

• 🔄 Homes Sold: 893 (up 11.6% YoY)

• 💰 Median Price: $495,000 (up 5.3% MoM)

• 🕒 Average Days on Market: 55 (up 39.6% from March)

• 🔻 Price Reductions: 27.1% of listings

Buyers in Colorado Springs are seeing more choices and better price flexibility, but many remain cautious due to broader economic unease. The current market presents a window of opportunity for financially ready buyers, particularly those using VA or FHA loans, to find a home with improved negotiating leverage.

📣 Call to Action:
Want to know how these trends affect your real estate goals in Colorado Springs? Let’s talk about your options—whether you're buying, selling, or just watching the market.

Original article: Supply of Homes for Sale Hits a Post-Pandemic High in April

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