Pricing, inventory and mortgage rates
By Deb Risden
In an article published in the Gazette on Aug. 31 by Breeanna Jent, it was reported that the median cost of a single-family home in the Pikes Peak region is $497,475 as of July 2025. The same article highlights median household income based on 2023 estimates at $87,479 in El Paso County and $80,666 in Teller County.
Data from the Pikes Peak Association of Realtors indicates significant increases in median home prices from 2015 to 2024 for all areas in the region. Falcon went from $278,000 to $540,000; Calhan/Ramah — $169,000 to $410,000, Peyton — $325,100 to $668,750 and Black Forest — $413,750 to $807,500. The Powers/Marksheffel area saw the highest growth from $230,000 to $822,000.
Jackie Pierce Eaton, longtime Realtor and owner of Synergy Realtor Group, said part of the reason prices tend to be higher overall in the areas noted is due to the type of housing, which she said skews the median prices for the area. “We don’t have condos, we don’t have townhomes; we have very few small, two-bedroom homes. We have newer and bigger homes, some on acreage,” Eaton said. “Even a mobile on acreage is more than $300,000 or $350,000 because it has acreage.”
More homes, fewer people
Other factors affecting the housing market include a decrease in people moving in and more people moving out. While Colorado’s total population is still growing, recent data (July 2025) from the Common Sense Institute and the U.S. Census Bureau show a significant decline in net migration into the state. This means fewer people are moving in than before, and in some recent periods, more people have moved out than moved in. According to the CSI, Colorado’s influx of people statewide has decreased by more than 50%, compared to 2015. In 2013, “Colorado attracted one in 12 people who moved to a state experiencing net growth. A decade later, that number dropped to just one in 120.”
The CSI report also stated that an aging population is a factor that could affect the state’s labor force and long-term economic vitality.
An increase in homes for sale is another component of a changing market.
According to a recent Redfin report, there were 43,987 homes (of all types) for sale in Colorado in July 2025, up 19% year over year.
In some counties, inventory is at its highest in a decade.
Mortgage rates
Although mortgage rates recently dropped to their lowest level in three years, the average 30-year fixed rate is still just over 6%.
Gay Veale, mortgage loan originator for Epoch Lending, said, “No one knows what’s going to happen with interest rates. There’s a good chance they will drop more.” She said interest rates are not tied to what the Federal Reserve does with funds rates, contrary to what many people think. That is the rate at which banks borrow money overnight. She said that historically, mortgage interest rates are tied to the bond market and 10-year treasury rates. “Also, if unemployment is up and new jobs are down, interest rates go down a bit. If new jobs go up and the economy is booming, interest rates will probably go up,” Veale said.
Veale said this year the market has been slower, and there are fewer more affordable homes at $350,000 or less. “Those homes are flying off the market, but they often need work, and buyers feel it’s unaffordable to purchase them and then they have to worry about making repairs to the house,” Veale said.
John Graham, Realtor, coach and mentor for Keller Williams Partners, said, “The home prices in Falcon have increased to the point where they have priced out a lot of new homebuyers, young people and young families. There are many who just can’t afford the cost of a loan.”
Graham said a buyer might have to come up with $25,000 to $50,000 or more for a down payment. “Unless they have parents or grandparents helping them, they can’t,” Graham said.
He said most people are looking for monthly payments of around $2,500, but that has to include mortgage insurance if they put less than 20% down plus homeowner’s insurance, taxes, principal and interest. There may also be homeowner’s association fees. “Even when they can afford the house, they can’t afford all the other costs associated with it,” Graham said. “Homeowners insurance alone has jumped 150 to 200% in some areas.”
Veale said with the recent dip in interest rates, she is seeing people starting to get back into the market. She said buyers are apprehensive about being able to afford to purchase a home. “Down payments scare a lot of people,” Veale said. She said loans are available from the United States Department of Agriculture with zero down payment, along with the Department of Veterans Affairs; the Federal Housing Administration requires 3.5%. Conventional loans require 5% down, but for first-time buyers, only 3% is required. Veale said the definition of a first-time buyer is someone who has not had an ownership interest in a home for the last three years.
Buying and selling trends
New homes are more attractive to buyers. Eaton said, “Builders will purchase a block of money for loans and advertise it at 4.9%. That’s a whole lot better than 6.5%.” She said they will also buy down the rates so that the first year’s interest rate is lower and increases incrementally. Builders also offer incentives, such as free appliances or other concessions.
“Everyone wants to live here for the quality of life Colorado offers,” Eaton said. “We don’t have huge dives in market prices like Miami and L.A.”
Some sellers might reduce prices gradually if the home sits on the market too long, but only in small increments. “I’ve had buyers try to lowball a few of my listings and the seller will say no. They might want to move but they don’t have to,” she said. Eaton said the average number of days on the market in Colorado Springs is 50 days and longer for the county.
Graham said investors are still buying, looking for homes that are priced around $300,000. “They want to make $100,000 off the house, so they’re always lowballing the offer and the seller doesn’t have to do any work on the house. For some, that’s OK,” Graham said.
“But right now, buyers are a little pickier. They want a house that’s priced right, in a good location and in good condition. If not, they want to see the price drop or they want concessions. It’s a buyers’ market.”
Predicting the future
Eaton said people are waiting for interest rates to drop. “Some people want to move but aren’t moving because they are holding a low interest rate and can’t get it again.”
“I think next year will be better but that’s debatable. Some say the market might correct itself a little bit,” Graham said.
The good news is that Veale thinks almost everyone can qualify for a mortgage loan. “Bad credit can derail your home-buying journey,” she said. In that case, she suggests the buyer reach out to a trusted mortgage professional who can help analyze the situation and possibly refer the buyer to a credit specialist.
Veale also encourages potential buyers to work with a mortgage lender early in the process to learn how mortgage loans work so they can prepare. “It’s important to have a conversation with a knowledgeable mortgage professional because they can help you walk through all of it and help you understand your budget and the process without focusing on the scary headlines about interest rates,” Veal said.
