COLORADO SPRINGS, Colo. (KOAA) — The housing market balance of power is tipping towards buyers, according to a new report from the Colorado Association of REALTORS.
“As the market heads into the fall, the balance of power remains tilted toward buyers. Elevated inventory, slower sales velocity, and the prevalence of meaningful concessions create conditions that allow buyers to negotiate terms that fit their needs while still benefiting from stable home values,” said Denver County-area REALTOR Cooper Thayer. “For sellers, success will depend on accurate pricing, strong property presentation, and a willingness to be flexible. For buyers, this is one of the most favorable negotiating climates in more than a decade, and one where opportunities are abundant if you know where to look.”
At the same time, one Colorado Springs REALTOR says we can expect the average home price in the Colorado Springs area to surpass $600,000, citing several reasons. In July, the average price for a single-family home in the Pikes Peak Region was $574,276 according to PPAR.
REALTOR Jay Gupta is a broker associate with Equity Colorado Real Estate. He didn't want to give an exact timeline on when we could see average home prices eclipse $600K, as he didn't want to mislead anyone. Gupta spends a lot of time diving into the long-term data when it comes to the housing market. One factor Gupta says leading to higher average home prices, new Canadian lumber tariffs put in place this month, now at 35 percent, as the National Association of Home Builders is reporting even more tariffs could be on the way.
"They're going to have a very, very significant effect," Gupta explained about the new tariffs. "A very large percentage of the number that we use in home building comes from Canada."
Gupta added that if new home prices increase, it will have a direct impact on existing homes. Another factor Gupta sees with the possibility of home prices increasing is the labor workforce.
"That is causing a huge challenge across the country," Gupta said, referencing the idea that a crackdown by ICE on undocumented immigrants is also impacting the labor workforce on new home builds.
The last thing Gupta points to as he forecasts an increase in home prices, a recent report by Cotality, which states they don't expect a price dip. Instead, Cotality’s Home Price Index forecasts a 4.2% rise by June 2026 while interest rates hold steady. A 4.2% increase in the Colorado Springs area is about $24,000.
"To me, there seems a very fair expectation," Gupta said of Cotality's report. "Given the shortage of labor, given all the material cost going up... and given the trend that how there has been such a pent-up demand in the Colorado Springs area, people simply walked away from the market because of the affordability challenges. Some people thought they could wait and wait when the prices come down, and now they have learned that after waiting for a year or two, they're paying a lot more than they were expecting."
Going back to the long-term data Gupta likes to study, he wanted to point out the vast increase in the average home price in the Colorado Springs area in the past decade, providing the following notes from PPAR data:
- Until 2016, the Average Price remained under the $300,000 threshold.
- In 2017, the average price crossed the $300,00 threshold and climbed to $314,589.
- In 2020, the average price crossed the $400,00 threshold and escalated to $415,329.
- In 2022, the average price crossed the $500,00 threshold and escalated to $535,404.
- In July 2025, the average price was $574,276.
ADVICE FROM GUPTA FOR BUYERS:
"I'm saying to the buyers, this is a very good time, a very opportune time," Gupta said. "When you have the willing and ready sellers, those who have been wanting to sell and have been waiting. Now negotiate, negotiate in good faith, offer a reasonable price, and then see what you can find."
With more than 4,200 active listings in July, Gupta said that is a very healthy supply market, which sat at about 3.7 months. The average days on market in the Colorado Springs area for July was 39.
ADVICE FROM GUPTA FOR SELLERS:
Gupta warns that if sellers list their home for too much, it may result in just one offer after months of being on the market, giving the seller a disadvantage. However, if the price listed brings in multiple offers, the seller has a lot more power.
"If you only have one buyer, then basically that one buyer is negotiating your price," Gupta explained. "You have nobody else to talk to."
Gupta said the situation of one offer puts the seller in a corner.
"I have sold every single time I've listed the property at a very realistic price," Gupta added. "And I've always sold them over the asking price... always."
COLORADO SPRINGS MARKET SUMMARY FROM THE COLORADO ASSOCIATION OF REALTORS:
Are the tides turning in favor of buyers? We have some signs that it may be true. July proved to be a frustrating month for sellers. What is normally summer selling season was lackluster at best. Increased inventory, up 21% from the previous year, gave buyers more selections. But they didn’t show up to buy. Median prices dropped 1% and units sold were off -6% year over year. Affordability continues to be an issue.
“Part of the issue we are feeling about housing relates to overall debt, in my opinion. Student loan payments, car payments, credit card payments, food bills, gas, insurance. All weigh on the economy and that carries over to housing. American households need to earn $112,000 per year to afford a home. We have a median income of $84,000, per Nick Gerli, of REVENTURE. This is a large spread and something must give. Either wages must increase, interest rates must drop, or home prices must come down. And in many areas, the housing shift on prices has begun. But here in the Pikes Peak Region they continue to stay elevated, and many would-be buyers opt to save money by renting.
“The economy continues to be fragile. Economic data from jobs to manufacturing show that we may be for a bumpy ride this winter and into next year. The betting odds of a rate drop from the Federal Reserve in September are running around 85%. Four Fed presidents have now come out publicly for rate cuts. Forty-one percent of consumer spending goes to housing, utilities, healthcare, medications, and insurance. In 1980, that was only 30%. Buyers are sitting on the sidelines because they are nervous. Until we see a better alignment between wages and home prices, I think you will see potential buyers sit longer. I imagine this winter will feel colder than many in our past when it comes to the housing market locally,” said Colorado Springs-area REALTOR® Patrick Muldoon.
The Perseid Meteor Shower peaks Tuesday evening. Here's how to see it
The Perseid Meteor Shower originates from the comet Swift-Tuttle and will peak tonight. In Colorado, the moon will drown out some views, but smoke won't be an issue Tuesday evening.
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