August 2025 Monthly Market Recap - Colorado Springs

An update on how August 2025 national events, interest rate shifts, and military changes are influencing Colorado Springs real estate trends, with an eye on what’s coming this fall.

As of early September, mortgage rates dipped to an 11-month low hovering around 6.4%–6.5% after new job data pointed toward slowing growth and higher odds of Fed rate cuts this fall (WSJ, AP News). At the same time, August was marked by nationwide “Fight the Trump Takeover” protests, growing uncertainty in the economy, and severe climate events such as the Milwaukee floods, all of which added to buyer caution.

Locally, Colorado Springs saw 847 new listings, 2,173 active listings, an average of 43 days on market, and 632 closings at a median sales price of $471,000. Yet, 315 listings expired, withdrew, or canceled, a signal that many sellers remain unwilling to price to today’s market realities, while minimal buyer showings reflect economic unease.

Looking ahead, two additional factors may impact our market this fall:

• The Space Force headquarters move out of Colorado Springs will reduce expected PCS demand, tightening the pool of incoming military buyers and shifting some rental demand instead of home purchases.

• Seasonal slowdowns in September and October, paired with continued political protests and Fed policy shifts, may push sellers to lower prices or offer concessions to capture buyer attention. This will no longer be a choice for agents and sellers and most likely a given if things continue as they have been.

The mix of national events and local military changes means sellers must stay flexible and strategic. Buyers, meanwhile, may find more negotiating power and less competition as the fall progresses.

New Listings

In August, there were 847 new single-family home listings, down from July. This suggests sellers are becoming more hesitant, possibly due to uncertainty in pricing and economic conditions. Some sellers are also holding back because they purchased just a few years ago at peak values and don’t want to accept today’s pricing realities.

What This Means

Buyers have slightly fewer options to choose from, (that is from what they’ve already seen for the more serious buyers) while sellers with newer listings face less competition but still must price wisely or they will wind up being part of the leftover inventory from previous months.

Total Active Inventory

The month closed with 2,173 active listings, a rise from July. This increase highlights that homes are staying on the market longer, with some carrying over from previous months. Many of them sitting 100+ days without selling. Overpricing, minimal staging, or simply slow showings during back-to-school season are common reasons these homes linger.

What This Means

Buyers can negotiate more aggressively, while sellers must make their homes shine or risk sitting on the market even longer.

Average Days on Market (DOM)

Homes spent an average of 43 days on the market, down from 48 in July. While active buyers are moving faster when they see the right property, plenty of listings from earlier in the summer are still lingering, skewing overall perceptions. School schedules and end-of-summer distractions have also slowed traffic, with many homes seeing just a trickle of showings.

What This Means

Buyers are selective, but motivated buyers are moving quickly once they find the right property. Sellers should prepare for fewer showings but be ready when serious buyers come along.

Closed Sales

There were 632 closings in August, slightly lower than July. While this reflects steady buyer activity, it’s not enough to absorb the growing inventory. Buyers are being more intentional with their choices, leaving overpriced or poorly staged homes behind even if they linger on the market for months.

What This Means

Buyers are out there, but they’re picky. Sellers need to align expectations with today’s values to capture serious offers.

Median Sold Price

The median sold price dropped to $471,000, down from $490,000 in July. This drop reflects buyers pushing back on pricing and sellers finally negotiating. For homes that have been sitting 100+ days, this often means the first serious offer arrives well below asking, a sign that the market is adjusting to what buyers are truly willing to pay.

What This Means

Buyers may finally find better deals, while sellers who bought at peak prices will need to decide whether to hold or accept today’s market realities.

Expired, Withdrawn, and Canceled Listings

August saw 315 listings fail to sell—a sign that many homes are overpriced, under-marketed, or not staged to compete in today’s higher-inventory environment. With showing activity at a crawl and school schedules limiting weekend tours, many sellers chose to pull their listings rather than face long days on the market.

What This Means

Sellers who don’t adjust risk joining this statistic, while buyers can use it as leverage to negotiate with motivated sellers.

External Influences on the Market

Fed held rates steady in July; mortgage rates eased to ~6.4–6.5% as of Sept 8

• Space Force HQ relocation confirmed → long-term reduction in PCS-related buying demand

• National protests + political uncertainty impacting consumer confidence

• Climate events (flooding in the Midwest) prompting relocation interest in Colorado

• Job market cooling → more cautious buyers, especially first-time buyers

Key Takeaways & What’s Next

FOR BUYERS

You have leverage with lower rates, high inventory, and motivated sellers.

FOR SELLERS

Pricing for today’s market is crucial. Staging is becoming a must have to sell. Homes not aligned with current values risk expiring unsold.

FOR INVESTORS

Softening prices and longer DOM create opportunities for rental property acquisition, especially with military families leaning toward renting due to PCS uncertainty.

FOR MILITARY FAMILIES

PCS delays and the Space Force relocation are reshaping demand—strategic planning is key this fall.

What’s Next

OVERALL MARKET OUTLOOK

As we move into September and October, the Colorado Springs housing market will likely feel the seasonal slowdown typical of fall, with fewer showings as school routines settle in and daylight hours shorten. The Space Force relocation and continued PCS delays may further reduce immediate military-driven demand, while political uncertainty and economic caution could keep buyers hesitant. However, with interest rates trending lower and inventory still high, motivated buyers and investors may find the fall market ripe with opportunities—especially if sellers become more realistic with pricing to capture deals before winter.

The Colorado Springs real estate market is changing, and strategic timing is everything. Whether you’re buying your dream home or selling for top dollar, expert guidance makes all the difference. 

Schedule your consultation today! Let’s strategize your next move in Colorado Springs.