Spring 2025 Housing Market Insights for Northern Colorado Springs
4 Things To Expect from the Spring Housing Market
Spring is in full swing, and the housing market is picking up along with it. And if you’ve been wondering whether now is the right time to buy or sell, here’s the inside scoop on why this spring may be a great time to make your move.
1. There Are More Homes for Sale
After a long stretch of tight inventory, the number of homes for sale is finally improving. According to recent national data from Realtor.com, active listings are up 27.5% compared to this time last year.
Look at the graph below and follow the green line for 2025. You can see, even though inventory levels still haven’t returned to pre-pandemic norms (shown in gray), that number is higher than it has been going into the spring market over the past few years (see graph below):
Buyers: This means you have more choices, and you can be more selective.
Sellers: With more homes available than in recent years, you’re more likely to find what you’re looking for when you move. And knowing that inventory is still below more normal levels means there will be demand for your home when you sell it, too.
2. Home Price Growth Is Moderating
As inventory grows, the pace of home price growth is slowing down – and that will continue into the spring market. This is because prices are driven by supply and demand. When there are more homes for sale, buyers have more options, so there’s less competition for each house. Rising supply and less buyer competition causes price growth to slow, but it should still remain positive in most markets. As Freddie Mac says:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
And while prices aren’t dropping at the national level, every market is different. Some areas are seeing stronger price growth, while others are cooling off or even seeing some price declines.
Buyers: The slower pace of growth means prices aren’t rising as quickly as before – and that’s a relief. Any home you buy now is likely to appreciate in value over time, helping you build equity.
Sellers: While prices are still rising, you might need to adjust your expectations. Overpricing your house in a more balanced market could mean it takes longer to sell. Pricing your house competitively is going to be key to attracting offers.
3. Mortgage Rates Are Stabilizing
One of the biggest hurdles for buyers over the past couple of years has been high, volatile mortgage rates. But there’s some good news – overall, they’ve stabilized in recent weeks – and have even declined a bit since the beginning of this year. And while that decrease hasn’t been a big drop, stabilizing mortgage rates has helped make buying a home a bit more predictable. According to Selma Hepp, Chief Economist at CoreLogic:
“With the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”
Buyers: When mortgage rates are more stable, it’s easier to plan ahead because you have a better idea of what your future payment might be. But remember, rates will continue to be volatile. So, lean on your agent and your lender to make sure you know what the latest mortgage rate means for you.
Sellers: Slightly lower rates that are starting to stabilize are encouraging more buyers to move forward with their plans. That’s good for demand when you’re planning to sell your house.
4. More Buyers Are Returning
With more inventory, slowing price growth, and stabilizing mortgage rates, buyers are gaining confidence and coming back into the market. Demand is picking up, and data from the Mortgage Bankers Association (MBA) shows an increase in mortgage applications compared to the start of the year (see graph below):
Buyers: Acting sooner rather than later could be a smart move before your competition heats up even more.
Sellers: This is great news for you – more buyers mean a better chance of selling your house quickly.
Do you have questions about what the spring market means for you? Let’s connect and talk about how to craft your plan this season.
With more homes for sale, slowing price growth, and stabilizing mortgage rates, how will this impact your decision to buy or sell this spring?
🌄 What Spring 2025 Looks Like in Northern Colorado Springs
As the spring market begins to take shape, real estate trends in 80921, 80908, and 80132 are reflecting both opportunity and caution. Here’s how each national trend stacks up locally:
1. Inventory Is Up, but So Are Questions
There are currently 357 active listings across our market, with a median list price of $799,000 for single-family homes. Inventory is distributed as follows:
80921: 82 listings
80908: 147 listings
80132: 128 listings
While supply has increased, buyer demand remains tempered by economic volatility. Showings are up compared to early 2024, but we aren’t seeing a rush of new contracts just yet.
📌 Buyer Tip: Look for homes priced below neighborhood medians or those with longer days on market—these often offer negotiation opportunities.
📌 Seller Tip: Expect more inventory competition. If you're listing this spring, price your home accurately from the start to avoid steeper price cuts later.
2. Price Growth Has Slowed
Local forecasts estimate 1–3% appreciation in 2025, although economic uncertainty is clouding the picture. Median sold price in:
February 2024: $692,000
February 2025: $680,000
📌 Buyer Tip: Slower price growth means less pressure to rush, but well-priced homes are still moving quickly. Act decisively when value aligns with your goals.
📌 Seller Tip: Overpricing will hurt more than help. A competitive list price improves your chances of a faster sale and stronger offers.
3. Mortgage Rates Aren’t Driving Decisions
Rates may have stabilized slightly, but buyers aren’t responding in a meaningful way. Many are still hesitant, focusing instead on long-term affordability and personal financial health. The unpredictability of rates due to inflation, unemployment data, and geopolitical factors continues to create buyer hesitation.
4. Serious Buyers Are Still Out There
We're seeing a healthy balance of serious, qualified buyers and casual browsers. High home prices and borrowing costs are keeping speculative interest at bay. Motivated buyers are out there, but they’re choosy.
📌 Buyer Tip: Submit clean offers with reasonable contingencies—these stand out more than aggressive discounts.
📌 Seller Tip: If activity is slow and your home is appropriately priced, be patient. If it’s overpriced, a 5–10% reduction (depending on concessions offered) may be necessary to generate traction.
💬 Bottom Line for Northern Colorado Springs
Spring 2025 presents both opportunities and challenges for buyers and sellers. The key is understanding your motivation, financial goals, and what the current market will realistically support.
📩 Need help making sense of your next move? Contact Wolff Real Estate Group today. Let’s build a plan around your goals and our local market realities.
