Colorado Home Sales Slid in September: What It Means for Colorado Springs

El Paso County Market Update: Nearly Balanced, With Real Room to Negotiate

We've upgraded this section! Starting this week, every number comes straight from the local MLS, the same system agents use to list and sell homes, so you're getting the most accurate picture of our market available. Some numbers will look different from past updates because we're now tracking homes that actually sold, not just homes sitting on the market.

Source: Elevate MLS through the Pikes Peak Association of Realtors, as of October 19, 2026.

What This Means

Almost as many homes went under contract this week as came on the market. That's the sign of a market that's close to balanced: buyers are active, but nobody is fighting over houses like they were a few years ago.

That "4.9 months of inventory" number is worth understanding. It's how long it would take to sell every home on the market if no new ones were listed. Most experts consider 5 to 6 months a balanced market, and anything higher tips in the buyer's favor. We're sitting right at the edge.

Townhomes and condos are a different story. Only 26 went under contract against 44 new listings, with 5.5 months of inventory. If you're a first-time or military buyer, this is where you'll find the most room to negotiate right now.

The Number Every Seller Should See

Homes are selling for 100% of their final asking price, but only about 97% of their original price. On a typical $470,000 home, that's roughly $14,000 lost by starting too high and cutting later. The homes that are priced right from day one are selling quickly and at full price.

The Headline Number

The Colorado Association of REALTORS released its September report this week, and the headline is straightforward: home sales across the state fell 15.1% compared with a year ago, with the Denver metro down even further at 18.7%. El Paso County followed the same pattern, with 996 homes closing in September, about 10% fewer than the same month last year.

What did not happen is a price drop. The median single-family home in El Paso County sold for about $484,700, up less than 1% from a year ago. Flat is the honest word: values have stopped rising quickly, but they have not fallen off a cliff. A market that cools this gradually is usually finding its balance, not heading anywhere dramatic.

Why Sales Are Slowing

Two forces are at work. Mortgage rates sitting near 7.5% keep monthly payments high, which takes some buyers out of the market and makes the rest move more carefully. At the same time, inventory keeps growing. El Paso County had about 4,253 single-family and patio homes on the market in September, up 6.1% from a year ago, the most for any September since 2011. More homes and fewer buyers is the classic recipe for a buyer's market.

That cooling has landed close to balanced. This week's local numbers show buyers active with room to negotiate, almost as many homes going under contract as coming on the market, and 4.9 months of inventory sitting right at the edge most experts call balanced.

For Buyers: You Finally Have Room to Breathe

If you have been waiting for the market to calm down, this is it. With more inventory and homes averaging around two months on the market, you have time to compare neighborhoods, ask questions, and negotiate. Sellers are more willing to talk about price and terms than they have been in years.

The one thing that still decides everything is your rate and your pre-approval, so get that squared away first. A patient approach with a solid number in hand gives you real leverage, and new construction adds to it: builders are competing hard with rate buydowns and incentives right now.

For Sellers: Price From Evidence, Not Hope

This market rewards sellers who start with an honest, data-backed price. Homes that begin too high are the ones that sit, then take a price cut and lose their best weeks of visibility. The homes selling right now are priced right, in good condition, and ready to show.