Colorado Springs Housing, Mortgage Rates 2026, Buyer-friendly Market, Home Selling Tips, Real Estate Trends, VA Loans Colorado

Colorado Springs Housing Market This Fall: What 7% Mortgage Rates Mean for Buyers and Sellers

By Ted Bachara, RE/MAX · Serving Colorado Springs since 1979

The short answer

Colorado Springs is leaning toward buyers this fall. Mortgage rates passed 7% in late September, homes are taking about 53 days to sell, and there are more than 4,200 homes for sale. Buyers have more choice and more room to negotiate. Sellers who price right from day one, and offer help with the buyer's rate or closing costs, are still selling.

If you've been watching the news, you've seen the headlines: the Federal Reserve raised rates in September for the first time in more than three years, and the average 30-year mortgage climbed back over 7%. The question I'm hearing most this week, from buyers and sellers alike, is simple: what does this mean for me in Colorado Springs?

After more than 45 years and 500+ homes sold here, my answer is that this is a good market for people with a plan. Here are the numbers, and what I'd do in your shoes.

Colorado Springs heads into fall with more homes for sale than at any time since before 2020.

What is happening with the Colorado Springs housing market right now?

The market has shifted toward buyers. Sales have dropped for three straight months, prices have eased since their spring peak, and inventory is roughly double what it was before COVID. Here's where things stand:

Colorado Springs at a glance

Sources: Pikes Peak REALTOR® Services Corp. data via Great Colorado Homes; The Gazette (Oct. 4, 2026); Freddie Mac. National rate average; your rate will vary.

Prices haven't collapsed. Values are down only about 1% from a year ago. What has changed is the pace and the leverage. In August, sales fell 12% from July, and the median price dipped to $470,000 before ticking back up in September. Most showings are happening in the $300,000 to $400,000 range, where first-time buyers are most active.

Why did mortgage rates go up?

In September, the Federal Reserve raised short-term rates for the first time in more than three years. Higher energy prices and rising Treasury yields pushed mortgage rates up with it. Freddie Mac's 30-year average reached 7.03% in late September. Five-year adjustable-rate mortgages were running near 6.63%, which is why many local lenders are talking to buyers about ARMs again.

Rates make the headlines, but they don't tell the whole story. In a slower market, the buyer usually gets something rates can't give them: negotiating power.

What should buyers do in Colorado Springs this fall?

This is the most buyer-friendly market Colorado Springs has seen in years. Here's how to use it:

• Negotiate beyond the price. Ask the seller to pay for a rate buydown or closing costs. A 2-1 buydown can lower your payment for the first two years.

• Look at homes that have been sitting. A home on the market 45 or more days often has a motivated seller.

• Compare new construction carefully. Builders are offering closing cost credits and lower in-house rates. Read the fine print, then ask resale sellers to match it.

• Talk to a lender about all your options. That includes fixed rates, adjustable-rate mortgages and buydowns. The right loan matters as much as the right house.

• Don't wait for the "perfect" rate. When rates drop, buyers come back and the bidding wars return. You can refinance a rate later, but you can't renegotiate a purchase price.

With more homes on the market, buyers can take their time and compare.

Military buyers: timing your move

I served four years in the Air Force at NORAD before starting my real estate career, so I know what it's like to get orders and need a home fast. If you're coming to Fort Carson, Peterson, Schriever or the Air Force Academy, a VA loan with no down payment, combined with today's seller concessions, can make this one of the best times in years to buy instead of rent.

What should sellers do in Colorado Springs this fall?

Homes are still selling, but buyers are choosy and they have options. The sellers who win this fall do a few things well:

1. Price it right on day one. In this market, the best value sells first. Homes that start too high often end up chasing the market with several price cuts.

2. Help the buyer with their payment. A rate buydown or closing cost credit can bring in more buyers than the same amount taken off the price.

3. Compete with the builders. New homes come with incentives. Your home needs to show as well as a model, at a price that makes sense next to it.

4. Make it show-ready. Fresh paint, clean carpets and good photos matter more when buyers are comparing dozens of homes online.

5. Watch the first 14 days. Showings and feedback in the first two weeks tell you whether the price is right. Adjust early, not after 90 days.

Well-priced, well-prepared homes are still selling this fall.

Is now a good time to buy or sell in Colorado Springs?

For buyers, yes, if the monthly payment fits your budget. You have more homes to choose from, more time to decide and more room to negotiate than at any point since 2019. For sellers, it can still be a good time, especially if you're buying your next home here and can take advantage of the same buyer-friendly conditions on the other side.

The neighborhoods I see moving best right now include Briargate, Pine Creek, Monument and Black Forest for families who want space, and the Broadmoor and Manitou Springs areas for buyers who want character and Pikes Peak views.

Ted Bachara has helped Colorado Springs families buy and sell since 1979.

Frequently asked questions

Is Colorado Springs a buyer's market right now?

It is leaning toward buyers. In September 2026 there were about 4,250 active listings and 4.6 months of supply, homes averaged 53 days on market, and sales were down from last year. Buyers have more choice and more room to negotiate than at any time since before 2020.

What are mortgage rates in Colorado Springs right now?

The national 30-year fixed average reached 7.03% in late September 2026, according to Freddie Mac, after the Federal Reserve's first rate increase in more than three years. Five-year adjustable-rate loans were near 6.63%. Your actual rate depends on your credit, down payment and loan type, so get a quote from a local lender.

Are home prices falling in Colorado Springs?

Slightly. The median sale price peaked near $500,000 in May 2026, dropped to $470,000 in August and was about $479,000 in September. Values are roughly 1% lower than a year ago, so prices are easing, not crashing.

Should I wait to buy until rates come down?

Waiting has a cost. Today buyers face less competition and sellers are offering concessions such as closing cost help and rate buydowns. If rates fall, more buyers return and that leverage shrinks. If you find the right home and the payment works, you can refinance later if rates drop.

How do I sell my home when rates are above 7%?

Price it right from day one, because the best value sells first. Make it show-ready, and consider offering a rate buydown or closing cost credit so buyers can afford the payment. That is how you compete with new-construction builders who are offering the same incentives.

Can military buyers use a VA loan in Colorado Springs?

Yes. Eligible service members and veterans near Fort Carson, Peterson, Schriever and the Air Force Academy can use VA loans, which often require no down payment. A Realtor who knows the military community can help you time a purchase around your orders.

Thinking about buying or selling this fall? Call or text me for a free home value or a personalized plan for your next move. Experience matters most when the market shifts.

Ted Bachara, RE/MAX · (719) 661‑1773 · [email protected]
3354 Templeton Gap Rd, Colorado Springs, CO 80907

Market figures come from Pikes Peak REALTOR® Services Corp. data (via Great Colorado Homes), the Colorado Association of REALTORS®, The Gazette, Realtor.com, Redfin, Zillow, Freddie Mac and MonitorBankRates, and were current as of mid‑October 2026. Rates and loan programs change daily; talk with a licensed lender about your specific situation. This article is general information, not financial or legal advice.