Colorado Springs Housing: September Surge in Listings, Spike in Pendings
September shook things up! National headlines and choppy interest rates nudged buyers back into the game, while a flood of price decreases (1,203 in September) told sellers it’s time to re-evaluate but will it last?
Overall, September showed a bigger, busier market than August with more new listings, more homes on the shelf, more sales, and a surge in homes under contract. Showings edged up from late summer but remain historically muted, which is why even good homes can sit unless they’re priced and presented for today’s payment-sensitive buyer.
In September, prices didn’t cool enough and Wall Street decided the Fed probably won’t cut rates soon. Mortgage rates dipped for a moment, then crept back up and stayed there helped by D.C. budget drama and other policy headlines that spooked bond markets. In Colorado Springs, that meant buyers focused on what the monthly payment would be, while sellers used credits and rate buydowns to keep deals moving.
For Colorado Springs specifically, steady defense employment and PCS churn underpinned demand even as affordability stayed tight. That helped sales and pendings rise despite longer DOM. Insurance and property-tax concerns stayed top-of-mind for both homeowners and investors, encouraging sharper underwriting and selective renovations. Net effect: the macro kept rates on a “sideways with bumps” path, which cooled bidding wars but didn’t break prices favoring well-priced, well-presented listings and punishing wishful ones.
New Listings
September brought 863 new single-family listings, adding meaningful choice to the market after this summers unusual cool down. The additional supply is enough to take the edge off any bidding pressure and proving to move into a clear buyers’ market. This indicator is just one of many. Fresh supply climbed, giving shoppers more apples-to-apples comparisons within each price band. More choice also rewarded homes that were turnkey and scent-free with great curb appeal. For sellers, this is a show-up-or-sit market. Youe pre-list prep matters.
What This Means
Sellers should expect head-to-head competition and plan to win on condition, pricing strategy, and incentives (e.g., credits or buydowns). Assume buyers will compare you to multiple near-identicals. Sellers win on condition, smell-neutral interiors, and curb appeal (mulch, paint, lighting) plus price discipline.
Total Active Inventory
Active inventory ballooned as more homes arrived than sold, lifting Months of Supply ≈ 2,721 ÷ 722 ≈ 3.8 (up from ~3.4 in Aug). That pushes us toward a near-balanced market where pricing stays broadly steady, but buyers have time to negotiate. The amount of price decreases and withdrawn/canceled listings might not be enough for sellers to get a leg up in this market. Even with the lowest rates of the year, the market needs time to adjust which means sellers will have to weigh out options. Inventory also amplifies any flaws such as stale carpet, pet odor, and most importantly, deferred maintenance because buyers can simply choose the next listing.
What This Means
Prices can stay stable while buyers negotiate on terms. Mispriced homes get exposed quickly and will sit for over the average days on market. Unfortunately, we are looking at a lot of mispriced homes currently.
Average Days on Market (DOM)
Average days on market is at 54 days (Aug: 43, +25.6% increase). Time on market lengthened, giving buyers room for second showings, thorough inspections, and lender scenarios (permanent vs. temporary buydowns). For sellers, the first 14–21 days are a truth serum. If traffic and offers lag, adjust faster, not later. Longer DOM also compounds odor or condition issues because more buyers experience them.
What This Means
Plan a full marketing cycle. Schedule two checkpoints (≈ day 14 and ≈ day 28) for strategy and price recalibration.
Closed Sales
Closings rose as summer shoppers finally crossed the finish line and rate dips unlocked a few fence-sitters. Despite stronger sales, supply grew faster so overall leverage stayed balanced rather than flipping completely to buyers. Expect a steadier autumn cadence, not a spring sprint.
What This Means
Demand is real, not frantic. Pair competitive pricing with credits or rate buydowns to capture decisive buyers focused on monthly payment. Freddie Mac
Median Sold Price
The median stepped down at $450,000 compared to August median home price of $471,000 (a decrease of 4.5%), reflecting both mix (more mid-price closings) and buyer selectivity. Updated, well-located homes still command strong results while dated or aspirationally priced listings are writing the price-decrease headlines. In a payment-centric market, many buyers trade a slightly higher price for bigger credits that lower the note.
What This Means
Expect stable-to-sideways values with micro-market variance (this is huge, we are in a micro-market craze). If your home isn’t model-ready, your price must be.
Pending Sales
Pending and under contract homes surged! An increase of 317% from August. A sign that rate relief (even brief) and 350 price decreases unlocks activity. This should flow into solid October/early-November closings, especially for homes that nailed presentation and pricing. Where pendings underperformed, feedback usually cites price, smell/cleanliness, or exterior first impression.
What This Means
Buyers are out there lurking, but selective. And with good reason. Align condition + price + payment help and you’ll join the next closing wave.
Expired, Withdrawn, and Canceled Listings
More listings tapped out in September with 350 withdrawn/canceled versus 315 in August (an +11.1% jump). The common threads: pricing that outpaced buyer value (especially with 1,203 September price reductions signaling where the market actually is) and sellers holding out for yesterday’s comps instead of today’s payment-driven reality. Homes that missed the mark on price or presentation (staging, odor-neutral interiors, curb appeal) simply got bypassed as buyers compared options.
What This Means
If your listing isn’t getting traction by day 14–21, the market is telling you to adjust and now. Re-align to the best recent comps, pair with seller credits/rate buydowns, and tighten presentation (professional staging, neutral scent, curb polish). Waiting the market out rarely beats meeting it.
The September Reality Check: 1,203 Price Decreases
According to ShowingTime (the showing app most agents in Colorado Springs use) this is the market voting in real time. With showings a tad higher but still low for the season, buyers hold the clock and spend their time on the best-prepared options. If you’re testing the top of the range without top-of-market condition, the market will move you there via reductions.
External Influences on the Market
Mortgage Rates: Early–mid September saw a notable dip, followed by a leveling and slight climb as traders reassessed inflation and labor softness; that kept affordability on a short leash. Freddie Mac+2Realtor+2
Politics / Fiscal Noise: Shutdown brinkmanship and policy headlines tend to push investors into Treasuries or out depending on risk tone, jiggling yields—and by extension, mortgage rates. Expect more of this headline-driven chop. Barron's
Consumer Mood: Confidence slipped again in September amid job-market worries, making buyers extra sensitive to net monthly payment versus sticker price. Investopedia
What This Means
Plan for bouncy rates, not a clean downtrend. Structure offers around seller credits and buydowns; sellers should budget concessions into their pricing from day one. Freddie Mac
Staging, Smell, and Curb Appeal: Non-Negotiables in 2025
NAR’s latest staging research found roughly 3 in 10 agents reported a 1%–10% value bump from staging, and nearly half saw faster sales—benefits that compound when inventory is high. In today’s comparison-shopping market, neutral scent, bright lighting, landscaping touch-ups, and clean lines are your cheapest ROI. GlobeNewswire
Rentals: Where They’re Headed (and why it matters)
Single-Family Rentals: Stable to slightly up—higher mortgage payments keep households renting longer; military turnover provides a steady renter base.
Apartments: Flat to slightly down in some submarkets due to new deliveries and concessions.
Investor takeaway: Model flat rents and rising expenses; use seller credits to enhance cash flow on day one.
Key Takeaways
Near-balanced market: ~3.8 months of supply—prices broadly steady, negotiations alive.
Buyers are back but picky: 651 pendings prove it, but only turnkey, well-priced homes win quickly.
Price realism matters: 1,203 September reductions = sellers recalibrating to what the market will bear.
Showings still low: A little better than late summer, but not enough to float rough-condition listings. ShowingTime
What Sellers Should Do (starting now)
Re-evaluate in week two if traffic underwhelms; don’t wait 30–45 days.
Stage professionally (lighten, declutter, neutralize odors), refresh curb appeal, and pre-inspect for easy wins. GlobeNewswire
Price to the comps, not to hope—bake in credits/buydowns to meet payment-sensitive buyers. Freddie Mac
What Buyers Should Do
Shop the best-prepped homes first; use inventory to negotiate repairs + credits instead of only chasing price drops.
Lock when the payment works; expect rate “wiggles,” not a straight line down. Freddie Mac
What Investors Should Do
Underwrite with flat rents and higher insurance/taxes; appreciation is a bonus, not the plan.
Target SFR and small-multis near defense/healthcare corridors and hunt stale listings (30–45+ DOM) for capex and buydown credits. Military.com
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.
