The supply of homes for sale in the Colorado Springs area reached a nearly 11-year high in June, and home sales also saw a slight boost in the sixth month of the year — even as area median home prices reached record highs.

The increases are possibly attributed, in part, to motivated buyers and sellers, one local housing expert said.

As of June 30, there were 4,055 single-family and patio homes for sale, a 36.4% increase over the same month last year, according to a Pikes Peak Association of Realtors market trends report released last week. It’s the most since 4,104 properties were listed in August 2014, historical data maintained by The Gazette show, based on Realtors Association figures.

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At the same time, the median price of homes sold last month hit a record high of $500,000, just slightly higher than the previous record of $499,000 reached in May 2024. This is an increase of 2% from $490,000 in May and a 0.2% increase from June 2024’s median sale price, which was also $499,000.

Though the average 30-year fixed-rate mortgage decreased nationwide for the fifth consecutive week last week, according to mortgage buyer Freddie Mac, rates remain high — double what they were in 2022.

Insurance costs have also increased, and more expensive home prices continue to keep some buyers on the sidelines, experts have said.

As of Thursday, 30-year, fixed-rate mortgages averaged 6.67% nationwide, a slight decrease from 6.77% the previous week ending June 26, Freddie Mac figures show. At the beginning of 2022, the long-term rate averaged 3.22%.

Those who can afford to buy are jumping into the market, said Gordon Dean, a real estate agent with Re/Max Advantage in Colorado Springs. He is also the past board president of the Pikes Peak Association of Realtors.

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“I think buyers got tired of waiting for good news. One of the biggest reasons people move these days is to be closer to family. They’ve been waiting to sell and to buy, and now I think their tolerance level has reached the level of, ‘we have to do something,'” Dean said. “So that’s causing the inventory.”

Many of his clients are searching for homes priced lower, between the high-$300,000s and low-$400,000s, to offset higher mortgage and insurance rates.

“So it’s still very competitive for nice homes in that price point,” he said.

New state housing laws, such as legislation enacted in 2024 requiring landlords to show cause before they can evict residential tenants, is also likely continuing to drive some of the increase in housing inventory, Dean added. The regulation is encouraging some investors to sell off homes they had been renting, he said.

A total of 1,197 homes sold last month, a 7.4% increase over June 2024, according to the Realtors Association report. It is the fourth straight month that sales rose on a year-over-year basis. 

The gains are the most for any June since 1,286 sales were recorded in June 2023, historical data show. 

Sales have now increased eight out of the past nine months, dating back to October 2024. That’s compared with sales that decreased 26 out of the previous 28 months, during the period from June 2022 through September 2024.

Through the first half of 2025, home sales totaled 5,954, a 6.1% increase from the same period in 2024, the report shows.

Though the average price of all homes sold between January and June was 3.3% higher than the same period in 2024, according to the Realtors Association report, it’s a lower rate of appreciation than what the Colorado Springs area typically experiences, said Harry Salzman of Salzman Real Estate Services and ERA Shields Real Estate.

Buyers and sellers in today’s Colorado Springs housing market are still at an advantage, though, he said.

“Over time, no doubt, that appreciation is coming right back. … When looking at (the area’s) relative interest rates, growth, job growth and the relocation of Department of Defense-types of employers … over time, we still in Colorado Springs have done very well,” Salzman said.

Buyers are likely purchasing homes now to gain equity while home values are up, Dean said.

“What we’re seeing now is what we’ll see all the way through the end of the year unless we see mortgage rates decrease. That’s the most controlling factor today,” he said. “… It has to be the interest rate, in my opinion, if you want to see (lower home prices).”

Citing President Donald Trump’s desire to lower rates, Salzman said he thinks they could come down further in the last half of the year.

Trump last week publicly criticized the Federal Reserve and its Chair Jerome Powell for not lowering rates faster. Amid intensifying pressure on Powell, Trump has announced the possibility of selecting his successor much earlier than expected; Powell’s term ends in 10 months.

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Trump on Tuesday repeated his previous calls for Powell’s immediate resignation.

“It’s most likely going to happen,” Salzman predicted of falling interest rates later this year. “Does that mean the buyer should wait for rates to drop? No. You can always refinance.”

Other housing products, like townhomes and condominiums, can help first-time buyers enter the local housing market, Dean said. With price tags generally lower than single-family homes, it’s also the most affordable option, he said.

The median sale price of condos and townhomes in the Colorado Springs area was $330,000 in June, down 3.2% from $364,586 in May and down almost 10% from $365,000 in June 2024, according to the Realtors Association report.

An increased number of condominiums is being built across the Pikes Peak region this year, data from the Pikes Peak Regional Building Department show. The department issued permits to construct 64 condos through the first six months of 2025, the most since 201 condominiums were permitted locally in all of 2007.

Ongoing projects include condominiums being built by Denver and Colorado Springs homebuilder Lokal Homes, which has pulled permits to build 60 condos this year in Victory Ridge near the In-N-Out distribution center on the city’s far north side.

MOD Inc. was permitted in June to build four condominiums in Monument, north of Colorado Springs.

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New state legislation Gov. Jared Polis signed into law in May, taking effect Jan. 1, hopes to incentivize developers to galvanize the affordable condo market, which supporters said died off in Colorado because of “construction defects” litigation. 

The governor has said he hopes by 2030 to see condos priced for between $250,000 and $300,000 as a result.

House Bill 1272 puts Colorado more in line with other states where condos are constructed and protects homeowners from legitimate defects, Polis previously said. The law reduced the possibility of lawsuits brought by homeowners against builders that allege errors in construction.

“I’d say that’s definitely boosted confidence” among developers to build more affordable condominium products, Dean said of House Bill 1272.

Sometimes builders avoid constructing condominiums altogether because of increased costs, he added.

“It has to be affordable to build in order to be affordable to purchase and own.”