Are We Headed Toward a Buyer’s Market?

By Josh & Virginia Rowland

I’m Josh Rowland with my wife Virginia. We’ve closed 200 sales here in Colorado Springs and I’m very confident that I know what I’m doing to represent you in a sale.

Have you noticed a shift in our housing market lately? August marked the 13th consecutive month of annual price increases, but will it last?

At the national level, homes are taking longer to sell, and prices are becoming volatile. Many ask, “Are we finally heading toward a buyer’s market?” The best answer is that it is not likely unless mortgage rates trend upward again. Instead, it seems like we’re in a balanced market where buyers and sellers have opportunities if they know what to look for. A significant change in rates could push our local market in either direction.

Monitor the year-over-year changes in active listings and the increasing monthly inventory supply. The National Association of Realtors (NAR) reported that the nationwide median existing-home price rose 4.2% year-over-year to $422,000, marking the 13th consecutive month of annual price increases. In El Paso County, August data shows sold listings down 2.1%, while the median sales price increased by 3.7%. Active listings rose 33.1%, with new listings up 12.2% for single-family patio homes and 5.5% for townhouses and condos. Pending sales climbed by 19% for single-family homes and 21% for townhouses and condos. The median sales price reached $500,000 for single-family homes (up 2%) and $347,000 for townhouses and condos (up 1.7%). Days on the market, they were increased by 24% for single-family patio homes and 71% for townhouses and condos.

Three things you need to know about our market right now to get the best deal, whether you’re buying or selling:

1. Why is our market balancing out? Despite record-high home prices and shrinking demand, prices aren’t falling due to low inventory and balanced supply-demand metrics. While inventory has increased nationwide, it hasn’t been enough to offset the persistent shortage in most markets. If inventory continues to rise, the market could favor buyers. For now, low supply and demand are balancing each other out.

2. Property condition matters. There’s a significant gap between homes in good condition and those needing work. Due to affordability issues, buyers often lack the funds for repairs after closing. Failing to make necessary repairs before listing could lead to low demand, giving the impression of a buyer’s market. However, preparing your home with your Realtor can attract multiple offers and even spark a bidding war. A pre-listing inspection can help you secure the best deal.

3. The market may speed up again soon. Lower activity might suggest a shift toward a buyer’s market, but a change could be near. Due to weaker job reports, experts expect the Federal Reserve to lower interest rates soon, making homes more affordable and spurring new demand. Many potential buyers have been waiting for rates to drop so that a rate cut could trigger a surge in demand. Now might be the time to act to avoid the increased competition that could follow.

The housing market may seem like it’s finding its footing, but make no mistake—it’s still a high-stakes game of tug-of-war. Buyers waiting for a significant price drop could wait for a long wait, as low inventory keeps prices steady. For sellers, there’s still gold to be struck—but only if your home is in prime condition. With potential rate cuts on the horizon, one thing is sure: this market is anything but predictable. It’s a dynamic dance, and the tempo can change in a heartbeat. Whether you’re looking to buy or sell, call me at (719) 271-5206 to learn how to be agile, informed, and ready to move when the market shifts.