Builders Have More New Homes Than They Can Move in El Paso County. Here's What That Means for You

For years, new construction in Colorado Springs meant waiting lists and bidding against other buyers. That has changed. Across El Paso County, builders are sitting on an unusually large supply of finished, unsold homes, and the balance of power has shifted in buyers' favor.

Why There Are So Many Unsold New Homes

New home prices in the Springs climbed faster than local incomes could keep up, so builders kept building into a market that has cooled. El Paso County now leads the state in unsold, builder-owned vacant parcels. Banning Lewis Ranch alone accounts for hundreds of them. It is the kind of surplus we have not seen here in years.

What That Means for Buyers

More inventory and slower sales give buyers real negotiating room. Builders are responding with the tools that matter most to a monthly payment: mortgage rate buydowns and closing cost credits. In some cases new homes are being priced well below the area's median. If you have been waiting for a little more leverage before buying, this is one of the more buyer-friendly moments we have had in a long time.

A few things worth knowing before you negotiate with a builder: incentives are often negotiable, and the price builders advertise is rarely their final position. Get your own pre-approval, understand what the "as-is" finishes actually include, and compare the total cost of the builder's rate buydown against what you could get on the open market. We can walk you through that math.

What It Means for Sellers of Resale Homes

Here is the honest part for sellers: your resale home is now competing directly with brand-new homes and aggressive builder incentives in the same price range. The Pikes Peak Association of Realtors reported roughly 1,189 closed sales in August with a median sale price around $449,000, and buyers have more choices than they have had in years. That does not mean you cannot sell well. It means pricing, presentation, and marketing matter more than they did during the frenzy.

If a new build in your neighborhood undercuts you on price and offers a rate buydown, we need a plan for how your home still wins. Sometimes that is pricing strategy. Sometimes it is what a buyer gets beyond the price tag, like a finished yard, a larger lot, or a location builders cannot match.

The Bottom Line

This is a good time to buy new construction, and it is a time when sellers need to be thoughtful about how they compete. Either way, you do not have to figure it out alone. We have watched this market swing both directions over more than two decades, and we will tell you straight what makes sense for your situation.