Colorado Springs Real Estate Update: What Today’s Inventory Tells Us About the Market Shift

If you’ve been keeping an eye on the Colorado Springs real estate market, you’ve likely noticed a significant shift happening under the surface. May 2025 gave us strong signals about where things are headed, and now, with 3,872 active listings in the Pikes Peak MLS as of today, it’s time to unpack what this means for both buyers and sellers.

A Look Back: Comparing May 2019 to May 2025

Let’s start with a quick comparison: (Pre-pandemic versus post-pandemic)

• May 2019

  • Homes Sold: 1,564

  • Estimated Active Listings: 3,200

  • Listed-to-Sold Ratio: 48.9%

• May 2025

  • Homes Sold: 1,166

  • Active Listings: 3,872 (up from 2,048 new listings that YOY)

  • Listed-to-Sold Ratio: 56.9%

  • Year-over-Year Listing Increase (2024 to 2025): +38%

This sharp rise in available homes signals more than just seasonal fluctuations. It tells a story about buyer behavior, pricing pressure, and overall market confidence.

What a Surge in Inventory Really Means

In real estate, inventory is one of the most telling economic indicators. A low inventory market often favors sellers, leading to competitive offers and rising prices. But when inventory climbs, especially as fast as we’ve seen, it shifts power into the hands of the buyer.

We now sit at just over 3.3 months of inventory (3,872 active listings divided by 1,166 monthly sales). That officially moves us from a seller’s market into balanced or soft buyer’s territory (depending on the neighborhood and zip code...some areas are firmly in a buyer's market).

Economic Signals from Today’s Market

• Pricing Pressure Increases: Homes must be priced competitively. Overpricing leads to longer days on market and eventual price reductions or the higher probability that the home will not successfully sell.

• Longer Time on Market: With more options, buyers take longer to decide. The sense of urgency that defined past markets is fading.

• Buyers Regain Leverage: Concessions, repairs, and seller-paid closing costs are back on the table. In May, 68% of all closed transactions offered seller-paid concessions to the buyer.

• Stabilizing Appreciation: After years of rapid price growth, values are stabilizing. While prices haven’t dropped drastically, the breakneck acceleration has cooled.

Sellers: What You Need to Know

If you’re selling a home in Colorado Springs right now, you need to lead with value. Here are some practical steps:

• Price based on current competition, with what has most recently sold being considered. Price for the market that is coming, not the market you are in.

• Prep your home to stand out...clean, stage, and photograph/video professionally

• Work with a local expert who understands how to position your home in this new landscape

Don’t expect the feeding frenzy of 2021. Instead, focus on attracting serious buyers who will act when the home is clearly priced and well-presented.

Buyers: It’s Your Time

Buyers, this is the window you’ve been waiting for. With inventory at multi-year highs and sellers more open to negotiation, you can:

• Explore more options across multiple price points

• Take your time evaluating the right home

• Ask for concessions or repairs when appropriate

Just remember: while the market has shifted in your favor, homes that are well-priced and move-in ready are still drawing strong interest. Be prepared to act when the right one appears.

Final Thoughts

With nearly 3,900 homes currently on the market, we are in a different season, one that rewards strategy, preparation, and data-driven decisions. Whether you are planning to sell, buy, or invest, understanding what these inventory levels signal is critical to making the best move.

Let’s talk about what this means for your specific situation. I’m here to guide you through it with insight, clarity, and a strategy tailored just for you.