Real Estate Blog

Summer ended with more homes on the market than Colorado Springs has seen in years, and fewer buyers competing for them. That combination has not existed here since before 2020. If you sat out the spring because everything felt overpriced and rates felt stuck, the fall setup is measurably different, and not in the way most headlines suggest.

Here is what actually changed over the summer, what it means for the next ninety days, and the one financing rule change that is quietly reshaping the entry-level end of this market.

Where mortgage rates actually sit

The 30-year fixed averaged 6.65 percent in the third week of August, down slightly from the week before. The 15-year sits near 5.95 percent. For context, the 30-year was roughly 6.58 percent at this time last year, so on a year-over-year basis rates are essentially flat.

What matters more than the headline number is the range. Rates spent most of the first half of 2026 in the mid-6s, dipped toward 6.46 percent in mid-July, then climbed to the highest level in a year by the end of July before easing back. That is a roughly 35 basis point swing inside of five weeks. On a $450,000 loan, that swing is about $105 a month.

The practical takeaway is not to time it. It is to be pre-approved and ready to lock so that when a dip shows up, you can act inside the window instead of starting paperwork after it closes. Most forecasts have the 30-year averaging somewhere in the low-to-mid 6s through the end of the year. Nobody credible is calling for a move below 6 percent.

Supply is the number that actually changed

El Paso County finished July with 3,237 active single-family and patio home listings, up 5 percent from June. Sales went the other direction, with 945 closings, down 10 percent month over month. Median sales price came in at $503,700 and the average at $580,282. Median days on market improved slightly to 37 days from 42 in June.

Teller County shows the opposite supply picture, with 321 active listings, down 16 percent from a year ago, and a median of $555,000. If you are looking at Woodland Park or Divide, you are shopping a genuinely tighter market than the Springs.

The number that tells the real story is price reductions. Just under half of Colorado Springs listings have taken a price cut, up from roughly 45 percent a year ago. Meanwhile the share of homes selling above asking has slipped to about 25 percent. Sellers are still getting close to list, around 98.8 percent, but they are getting there by adjusting the list price first.

Translated: this is not a crash and prices are not falling meaningfully. It is a market where the leverage moved. You can ask for a rate buydown, a repair credit, or a closing cost contribution and not get laughed out of the room. Two years ago you could not.

What that median price means with BAH and a VA loan

The $503,700 median is a useful market signal and a misleading shopping target. At 6.65 percent with zero down and the funding fee financed, a median-priced home runs roughly $3,600 to $3,700 a month once taxes and insurance are included. That is above every enlisted BAH rate in the Colorado Springs military housing area and above O-4 with dependents.

Here is a more honest read on where 2026 Colorado Springs BAH lands you, assuming a zero-down VA loan at current rates with roughly $350 a month combined for taxes and insurance:

Most military buyers here do not hold their payment to BAH. They contribute above it, the same way they would above a rent payment. But knowing the break-even number changes how you shop, because it tells you which price tier is a stretch and which is comfortable. If you want the deeper breakdown on how BAH and VA entitlement interact at Fort Carson specifically, that is covered here.

One more thing worth knowing: the baseline conforming loan limit for 2026 is $832,750 in most counties. In a market with a $503,700 median, VA loan limits are effectively a non-issue for the overwhelming majority of buyers here. Entitlement, not loan limits, is what determines your ceiling.

The condo rule change nobody told you about

This is the most consequential change of the summer and it got almost no local coverage.

Effective August 3, 2026, Fannie Mae eliminated its Limited Review process and Freddie Mac eliminated its Streamlined Review. Nearly every condo project with more than 10 units now requires a Full Review on conventional financing, regardless of the building's history. The lender has to pull and examine the HOA budget, reserve balances, reserve study, insurance declarations, delinquency rates, and litigation status before the loan can move.

Two things follow from this.

First, timelines stretch. Plan on 45 days minimum for a conventional condo purchase instead of 30, and write your financing contingency accordingly. If you are on PCS orders with a hard report date, that difference is not academic.

Second, some buildings are going to fail. The reserve threshold under the new framework is 15 percent of annual assessment income, unless a qualifying reserve study from within the last three years says otherwise. Older complexes with underfunded reserves and low dues are the ones at risk. A building that fails becomes non-warrantable, which means conventional financing is off the table and the buyer pool for anyone selling in that building shrinks to cash and portfolio lenders.

For VA buyers there is a separate wrinkle that predates this change and still catches people. The VA approves entire condo projects, not individual units. There is no spot approval on the VA side the way FHA allows. If the complex is not on the VA approved list, your VA loan does not work there, period, and getting a complex approved requires the HOA board to initiate it.

Practical move if you are shopping condos or attached townhomes in the Springs this fall: before you write an offer, have your lender confirm the project's status, and request the HOA budget, reserve study, insurance declarations, and recent meeting minutes the day your offer is accepted. Do not wait for the title company to shake them loose.

New construction and what builders are actually offering

The development pipeline here is still enormous. In July, planning approvals moved forward on land plans that could add roughly 5,000 homes across 1,100 acres within Banning Lewis Ranch. Farther southeast, the Amara project east of Fountain is planned at 3,200 acres and as many as 9,500 homes over its full buildout. Karman Line and Percheron sit in the same growth band. None of this delivers next spring, but it does mean the eastern and southeastern edges of the metro will keep adding supply for a long time.

For a buyer this fall, the near-term story is incentives, not inventory. With sales down and standing inventory sitting, builders across the Front Range are running temporary rate buydowns, permanent buydowns, closing cost credits, and design center allowances. Local builders are actively advertising 2-1 buydowns paired with closing cost money on quick move-in homes, plus military-specific programs.

Why this matters more than a price cut: a builder will not usually drop the sticker price, because that resets comparable values for everyone who already closed in the community. They will instead buy your rate down. A 2-1 buydown drops your rate two points in year one and one point in year two before stepping to the full rate. In real terms, that moves an E-7 with dependents from a comfortable purchase around $325,000 to something closer to $410,000 in year one. The catch is that it steps up, and you need to be able to carry the full payment in year three. A permanent buydown is worth more if you plan to hold the property past your current tour.

Three things to check on any new build here that the sales office will not lead with:

• Metro district taxes. Many of the newer master planned communities sit in Title 32 special districts that layer additional mill levies on top of standard property tax. Two homes at identical prices in different communities can carry meaningfully different monthly tax bills. Ask for the actual mill levy, not a payment estimate.
• What is not included. Landscaping, fencing, window coverings, and sometimes appliances are frequently excluded. Budget $15,000 to $30,000 depending on lot size and community standards.
• The lender tie. Incentives are almost always contingent on using the builder's lender. That can still be the better deal, but price it against an outside quote before you assume it.

What fall usually does to this market

Colorado Springs runs on a military calendar as much as a school calendar. Peak PCS season ends in August, which pulls a large block of buyers out of the market at exactly the moment inventory is at its annual high. Buyer traffic thins from September through the holidays while the listings that did not sell in spring are still sitting there, now with three or four months of carrying costs behind them.

That is the entire argument for buying in the fall here. Less competition, more motivated sellers, and enough days on market that you can actually think for a day before writing an offer. What you give up is selection. The best homes still sell, and inventory begins tightening in November and December.

If you are weighing whether to buy at all versus renting through your assignment, the math depends heavily on tour length and whether you would hold the property as a rental afterward. That comparison is worked through in detail here.

What to do in the next sixty days

If you are buying between now and the end of the year:

• Get fully underwritten, not just pre-qualified. In a market where rates swing 35 basis points in five weeks, the ability to lock quickly is worth more than a slightly better quoted rate from a lender who cannot close.
• Shop the rate, not just the loan. Spreads between lenders on VA loans in this market routinely run a quarter point or more. Pull three quotes on the same day.
• Ask for the buydown. On resale, a seller credit toward a rate buydown often costs the seller less than an equivalent price reduction and saves you more monthly. Sellers who have already cut price twice are frequently open to it.
• If you are looking at condos or attached product, confirm project approval status before you write, not after.
• On new construction, price the builder incentive package against an outside lender and factor the metro district levy into your monthly number.

For a broader look at where this market has been over the past year, the ongoing market update is here.

Frequently asked questions

Is fall a good time to buy a home in Colorado Springs?

Generally yes, if your priority is negotiating leverage over selection. Buyer traffic drops after PCS season ends, inventory is near its annual peak, and sellers who listed in spring have the most motivation they will have all year. Selection narrows through November and December.

What is the median home price in Colorado Springs right now?

The July 2026 median for single-family and patio homes in El Paso County was $503,700, with an average of $580,282 and a median of 37 days on market. Teller County's median was $555,000.

Are mortgage rates going down before the end of 2026?

The 30-year fixed averaged 6.65 percent in mid-August. Most forecasts put the year-end average somewhere in the low-to-mid 6 percent range. No mainstream forecast has rates dropping below 6 percent this year.

Did condo financing rules really change?

Yes. As of August 3, 2026, Fannie Mae's Limited Review and Freddie Mac's Streamlined Review are gone for projects with more than 10 units. Full project review is now required on nearly every conventional condo loan, which adds roughly two weeks to closing and puts buildings with underfunded reserves at risk of losing conventional financing eligibility.

How much home does Colorado Springs BAH actually cover?

At current rates on a zero-down VA loan, 2026 BAH with dependents lines up with roughly $305,000 for an E-5, $325,000 for an E-7, and $370,000 for an O-4. The market median is well above all of those, which is why most military buyers here contribute above BAH.

Is new construction worth it in Colorado Springs this fall?

The case for new construction right now is financing, not price. Builders are running rate buydowns, closing cost credits, and military programs on standing inventory that resale sellers usually cannot match. Weigh that against metro district mill levies, lot premiums, and the landscaping and fencing that are typically excluded.

Are home prices in Colorado Springs going to drop?

Nothing in the current data points to a decline of any size. Median prices have moved within a narrow band for more than four years. Inventory has grown but has not reached the level associated with a genuinely balanced market. The more likely path is continued flat-to-slightly-up pricing with buyers holding more negotiating power than they have had since 2019.

Should I wait for rates to come down before buying?

Waiting has a cost. If rates do fall meaningfully, buyer demand returns and competition rises with it, which tends to erase the payment savings through price. Buying while leverage favors you and refinancing later if rates cooperate is the more defensible approach for most buyers in this market. Whether it is right for your situation depends on your timeline and how long you expect to hold the property.

Working with someone who knows this market

I am a Colorado Springs native and a licensed agent here, and I work primarily with military families relocating to Fort Carson, Peterson, Schriever, Cheyenne Mountain, and the Air Force Academy. If you are heading here on orders or already local and trying to decide whether this fall is your window, I am happy to walk through the numbers for your specific rank, timeline, and price range. No pressure and no obligation. Reach out through the contact form and I will get back to you.

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