Quick Answer: What does rising builder-owned inventory in El Paso County mean for buyers?

Builder-owned inventory is rising across El Paso County, and that shift is creating real opportunity for buyers. Over the last several months, inventory has remained elevated, days on market have increased, and builders are carrying more standing inventory. That usually creates more negotiating power, more incentives, and more flexibility for buyers who understand how to approach the market strategically.

Watch the FOX21 Interview

Here is the full segment featuring Charles Beaton discussing builder-owned inventory in El Paso County and what it means for buyers in today’s market.

What FOX21 Reported, and What It Really Means

The FOX21 story focused on the increase in builder-owned homes across El Paso County. In plain terms, that means more completed or near-completed new construction homes are sitting unsold.

At first glance, that can sound negative. But in reality, it is a sign of a market that is normalizing.

During the most competitive years of the market, inventory was extremely tight, buyers had very little leverage, and builders could move homes quickly with fewer concessions. That is not the environment we are in now.

Today, buyers have more options, more time to think, and in many cases more negotiating power than they have had in years.

What the Last Four Months of PPMLS Data Are Showing

When you step back and look at the PPMLS numbers from November through February, the pattern becomes much easier to see.

November 2025

In November 2025, there were 3,555 active single-family/patio homes on the market, with about 4.2 months of supply. The average sales price came in at $551,605, and average days on market were 57 for single-family/patio homes overall, with El Paso County at 54 days.

December 2025

In December 2025, active inventory dropped to 2,837 homes and months of supply fell to 3.1. Average sales price also softened to $531,469, while average days on market moved up to 65 for single-family/patio homes overall, with El Paso County at 61 days. :contentReference[oaicite:2]{index=2} :contentReference[oaicite:3]{index=3}

January 2026

By January 2026, active inventory held at 2,843 homes, but months of supply jumped to 4.5. Sales slowed to 637 single-family/patio homes, and average days on market rose to 74 overall and 71 in El Paso County. The average sales price was $543,847 with a median sales price of $469,950.

February 2026

In February 2026, active inventory increased again to 2,926 homes. Sales picked back up to 773, but inventory still remained elevated. Average days on market came in at 67 overall and 65 in El Paso County, while the average sales price adjusted to $524,494 and the median sales price was $465,000.

That sequence matters. Inventory did not just spike for one month. Over several months, the market has clearly moved away from the ultra-tight conditions buyers were dealing with a few years ago.

The Pattern Most Buyers and Sellers Are Missing

A lot of people see rising inventory and immediately assume something is wrong.

That is usually the wrong takeaway.

The better question is who has leverage right now.

And the answer is changing.

When inventory rises, homes take longer to sell, and price growth cools, leverage starts to shift away from sellers and toward buyers. That does not mean sellers cannot succeed. It means the market is less forgiving, and strategy matters more.

Why Builder-Owned Inventory Is Rising

Builders are not carrying extra inventory by accident.

They are responding to a market where buyers are still active, but more cautious. Monthly payment matters more. Buyers are comparing more options. Decisions are taking longer. At the same time, builders have continued delivering homes into high-growth parts of El Paso County.

That combination creates standing inventory.

And once builders start holding more completed homes, their focus usually shifts. Instead of pushing price as far as possible, they start protecting pace and trying to keep inventory moving.

What This Means for Buyers Right Now

This is where the opportunity becomes real.

When builders are holding inventory, buyers often gain access to things that were much harder to get in a more aggressive market, including:

• Interest rate buydowns
• Closing cost contributions
• Upgrade or design center credits
• More flexibility on move-in timing
• Occasional pricing adjustments on standing inventory

And just as important, buyers usually have more time to evaluate options. In a market where homes are taking longer to sell, there is more room to compare communities, builders, floor plans, lot positions, and financing strategies without the same level of pressure.

That does not mean every builder is going to negotiate the same way. It means buyers who understand where leverage exists can make smarter moves.

What This Means for Sellers

Sellers can absolutely still succeed in this market. But they need to understand what they are competing against.

They are not just competing with other resale homes. In many parts of Colorado Springs and El Paso County, they are also competing with brand-new homes that may come with rate incentives, closing cost help, and builder-backed promotions.

That means pricing, presentation, and timing all matter more.

The market is still showing strong sale-to-list ratios. In January, single-family/patio homes sold at an average of 98.6% of list price, and in February that moved to 98.8%.

So this is not a weak market. But it is a market where buyers are more selective and overpriced homes are more likely to sit.

Price Reductions Tell the Story Too

One of the clearest signs of a more balanced market is the number of listings that need price reductions to regain traction.

In November 2025, El Paso County saw reduction rates around 33.7% in the $400,000 to $499,999 range and 33.5% in the $500,000 to $599,999

In December 2025, those reduction rates remained meaningful, including 29.7% in the $300,000 to $399,999 range and 21.5% in the $500,000 to $599,999 range.

In January 2026, El Paso County had about 40.3% of active listings in the $300,000 to $399,999 range with reductions, along with 30.2% in both the $400,000 to $499,999 and $500,000 to $599,999 ranges.

In February 2026, reductions were still elevated, including 36.8% in the $300,000 to $399,999 range and 25.0% in the $400,000 to $499,999 range.

That is the market correcting pricing expectations in real time.

Why This Shift Is So Visible in New Construction

New construction is where this trend becomes the easiest to see because builders are continuously adding supply.

In areas like Falcon, Peyton, 80908, and other high-growth parts of El Paso County, multiple builders are often competing in the same corridor, sometimes in similar price bands, sometimes with similar products, and often for the same buyer pool.

That kind of competition can create real opportunity, but only if you understand how to read it.

This is why new construction is not plug-and-play. Builder contracts are different. Incentive structures shift month to month. Lot premiums, standing inventory, spec home timelines, and financing relationships all matter.

This Is Not a Crash. It Is a Transition.

That distinction matters.

The data does not show a collapse. It shows a market moving out of an extreme seller-driven phase and into something more balanced.

Balanced markets feel different. They are slower. Buyers have more options. Sellers need to be sharper. Builders have to compete harder. Negotiation matters again.

For the right buyer, that can be a very good thing.

How We Approach This at Beaton Brothers Property Experts

At Beaton Brothers Property Experts, we are not just reacting to headlines. We are tracking what is happening underneath them.

We watch inventory trends, days on market, builder behavior, price movement, and community-level competition so our clients understand where leverage exists and how to use it.

That matters in any market, but especially in one like this where the biggest opportunities are often not obvious to the average buyer or seller.

Start With a Clear Strategy

If you are thinking about buying or selling in Colorado Springs or anywhere in El Paso County, the best next step is to build a plan around what the market is doing right now, not what it was doing two years ago.

We can help you understand where the real opportunities are, how to navigate builder inventory strategically, and how to make your next move with confidence.

Reach out to Beaton Brothers Property Experts to build a clear, data-driven strategy for your move.