Area home listings, sales increase in March, but economic volatility keeps some buyers, sellers on the sidelines

Colorado Springs-area home listings and sales increased in March, sales prices remained steady and the local housing market is again becoming more seasonal, though it remains generally sluggish as economic volatility keeps some buyers and sellers on the sidelines, one industry expert said.

“The volatility of the overall economy — globally, nationally, locally, all of those — I think the volatility is extreme and has been extreme-extreme in the last six months. I think that makes people nervous, afraid and unsure” of participating in the housing market, said Eddie Hurt, a longtime real estate agent with ERA Shields Real Estate. “When people have all those feelings, a lot of times they sit still.”

Single-family and patio home listings and sales have gradually increased month-over-month since January, a report released this month from the Pikes Peak Association of Realtors shows.

Listings totaled 3,057 in March, a roughly 4.5% bump over February, when 2,926 homes were listed, and up from 2,843 listings in January. This is a reversal from the five months between August and December when listings fell consistently month-over-month, according to historical data maintained by The Gazette and based on Realtors Association figures.

There were 1,036 home sales in March, 34% more than in February, when 773 homes sold, and up from 637 in January. March sales were down roughly 2% year-over-year compared with March 2025, historical data show.

“For the Pikes Peak region and El Paso County, especially, I think the numbers we’re seeing through the first quarter of this year are starting to show we’re back to a very … seasonal market,” Hurt said.

The region experienced “a pretty solid increase” in the number of listings that came online last month, a return to what is typical for the area, he said.

The market was red-hot between 2020 and 2022, with little seasonality. During this time, home prices rose significantly, driven by low mortgage rates that had more than doubled by the end of 2022.

More sellers who purchased when rates were at 3% or below are now moving again, Hurt said. They may be downsizing, upsizing or relocating.

“A lot of them are starting to move because it’s the American way. It’s about convenience. It’s not always the best financial decision, but when you have to downsize or upsize or move for whatever reason … there’s a sticker shock that … now people are willing to endure,” Hurt said.

Sales prices held fairly steady throughout the first quarter of 2026, according to Realtors Association data.

The median sale price was $475,000 in March, up 2.2% from $465,000 in February and an increase from $469,950 in January. The median sale price reached a record $500,000 in June, according to historical data.

Following the federal government shutdown from Oct. 1 to Nov. 12, the real estate market was “slow and quiet” at the end of 2025 and in the beginning of 2026, Hurt said.

 “Then all of a sudden, things started to take off,” he said.

Average 30-year fixed mortgage rates began falling in December and had dipped below 6% on Feb. 26 for the first time since September 2022, according to mortgage buyer Freddie Mac.

But mortgage rates rose again after the U.S. and Israel conducted a major attack on Iran on Feb. 28, peaking at 6.46% on April 2 and falling to 6.30% as of Thursday, a four-week low.

“The war has definitely affected our market locally. It’s definitely slowed down a bit, but even still, we’re seeing a decent amount of growth in sales, and we’re seeing sales prices more or less hold steady,” Hurt said. “I think that says a lot about our local market.”

In the weeks since the war began, President Donald Trump has said repeatedly the conflict could end soon. He said on Thursday the war with Iran is “very close to over,” after hinting earlier this week at a second round of negotiations with Iran.

Should the war continue into the summer, Hurt expects home prices in the Pikes Peak region could dip slightly, between 1% to 3%, with sales holding steady or coming down minimally compared with the previous year.

If the conflict comes to an end soon, Hurt expects local home prices and sales could both climb by 1% to 3%, driven by stronger consumer confidence.

But the biggest affordability factor for buyers is mortgage rates, which are directly influenced by the bond market.

“You can put your finger on mortgage rates, and that’s mostly for people to decide (they) can afford to buy right now or not. If mortgage rates come down to around 6%, that improves buying power,” he said.

In an area that is home to five military installations and tens of thousands of service members and federal employees, government shutdowns and wars can have a bigger impact.

“That can affect us more than a lot of markets. But the strength of our market is also found in our government jobs and the military, which have allowed our economy to weather so many storms,” Hurt said.

The average number of days homes are listed on the market is also increasing, up to 74 days in the first quarter of the year compared with 65 days in the first quarter of 2025, according to a quarterly market report compiled by Hurt.

But these are average figures for the region over the last 13 years, he said, despite years like 2021 and 2022, when homes spent almost no time on the market.

“A lot of people look back at the end of 2020 and through 2021 and 2022, when the market was abnormal and they saw prices jump 10%, 15% or even 20% year-over-year. Now, we’re having our market go back to seeing a 2% or 3% appreciation, or even a 1% depreciation, and it feels devastating compared to just those two years,” he said.

But today’s market is stable, Hurt added.

“It still leans slightly toward sellers, because days on market and inventory rates are still low, when you look back historically … over the last 20 years. But it’s a very balanced market,” he said.