Colorado Springs Market Update – Buyer Activity is Rising 02/18/2025

Colorado Springs Market Update – Buyer Activity is Rising

The real estate market in Colorado Springs has seen a shift over the past two weeks, with increased buyer activity and evolving market conditions. As we move further into 2025, key trends are emerging that provide insight into what buyers and sellers can expect in the coming months.

More Showings, More Contracts

MLS data shows that last week had the highest number of home showings since May 2024. The average listing is now receiving 1.81 showings per week, which is nearly double the mid-January rate. Buyer activity is picking up, particularly in price ranges under $700,000, which account for the majority of recent contracts.

Inventory and Market Shifts

January 2025 saw an increase in housing inventory for the first time in 11 years, starting February with 2,448 active residential listings. However, that number has already dropped 3% to 2,379, signaling that new listings are being absorbed by buyers. Median days on market for single-family homes have decreased from 62 to just 45 days, meaning homes are selling faster than earlier this year.

Federal Reserve Update & Interest Rate Projections

Economic factors continue to influence the real estate market. Inflation increased to 3% in January, up from 2.9% in December. In response, the Federal Reserve maintained its rate at 4.25% to 4.50% in its latest meeting, citing persistent inflation concerns. Earlier expectations of four rate cuts in 2025 have now been revised to only two potential reductions this year.

With interest rates holding steady and buyer activity increasing, understanding these shifts is important for anyone considering a real estate decision in the coming months.

For more information on how the current market conditions might impact your real estate goals, feel free to reach out.