Colorado Springs Housing Market Update: What January 2026 Data Signals for Spring Buyers and Sellers

Quick Answer

January 2026 looks like a reset month for the Colorado Springs and the greater El Paso County housing market. Inventory has climbed to about 4.5 months of supply for single-family homes, sales volume slowed month over month, but prices remain stable. The result is a quieter market where leverage is beginning to shift, without the price collapse many people fear.

Why January Matters More Than It Looks Like

January is rarely a headline month. Activity typically slows after the holidays, buyers regroup, and sellers test the waters. But January often sets the tone for spring, especially when multiple indicators move at the same time.

That is what we are seeing now. Instead of sharp corrections or dramatic rebounds, January 2026 brought a structural reset:

• Inventory rose, sales cooled, and prices held. For anyone planning a move this spring, that combination matters.

Inventory Is Up and That Changes the Conversation

The most important shift in the January data is supply. Single-family homes moved to roughly 4.5 months of supply, up from about 3.1 months in December. More supply does not automatically mean a weak market. It means buyers have more options.

Active listings also increased year over year, which supports the idea that the market is normalizing. When buyers can compare homes, leverage starts to quietly shift. That usually shows up first in negotiation terms, not in dramatic price drops.

Sales Volume Slowed, But Not in a Concerning Way

Sales were down month over month, which is common for January. What matters is the context: this is a slower, more deliberate market, not a market without demand.

Buyers are being cautious and selective, especially when a home feels overpriced or needs work. In practical terms, the pace has changed,
but the market is still moving.

Prices Are Holding Steady

Here is the steadier signal inside the January report: pricing held even as closings slowed.

• The median sales price for single-family homes rose month over month (to about $469,950),
• The average sales price increased modestly as well (about $543,847).

Year over year, prices are slightly softer, but not collapsing. That combination typically points to a market that is recalibrating,
not unraveling. Homes that are priced correctly are still selling. Homes that chase yesterday’s pricing are sitting longer and adjusting.

Days on Market Are Rising and That Is Normal

Average days on market climbed into the 70-day range for single-family homes. Longer timelines do not automatically mean the market is broken. In this cycle, it reflects a return of choice. Buyers are not rushing, and sellers are being rewarded for strong pricing and presentation.

We are also seeing reductions concentrate in common price ranges, with typical reduction amounts staying modest. That pattern is consistent with a pricing correction (overpricing gets corrected), not distress (forced selling).

What This Market Is Not

With so much noise around housing right now, it is worth being clear about what January’s data does not show.

• This is not a market crash. We are not seeing broad, sharp price drops or widespread distress patterns.
• This is not a frozen market. Homes are still selling. The pace is simply more measured than peak years.
• This is not a signal to panic or rush. January’s numbers reflect a market catching its breath, not losing its footing.

What we are seeing instead is normalization: more inventory, more buyer selectivity, and a bigger penalty for overpricing than we saw a couple years ago.

A Practical Spring 2026 Outlook

Rather than making bold predictions, the January data gives us a framework for what spring is likely to look like if current patterns continue. Inventory often rises as we move toward peak season, and January’s jump in new listings is consistent with that ramp-up.

At the same time, pricing has remained relatively steady even with slower sales volume. That combination is a classic stabilization pattern.
It suggests a more balanced spring market where outcomes depend heavily on preparation and strategy.

• Buyers: More options and more room to negotiate, especially on homes that are overpriced or need work.
• Sellers: Strong results are still realistic, but correct pricing and presentation matter more than ever.

The market is not accelerating or unraveling. It is resetting into a steadier, more rational rhythm.

Spring 2026 Game Plan: Buyers vs Sellers

If You Are Buying This Spring

• You can be more selective. With supply higher than late 2025, buyers have more room to compare homes before committing.
• You can negotiate more often. Longer market times and common reductions create opportunities for credits, repairs, or pricing discussions.
• You still need to move when the home is right. Well-priced homes in good condition can still sell cleanly.

If You Are Selling This Spring

• Pricing strategy matters more than ever. Sales slowed, but prices held. That usually rewards sellers who list at market value from day one.
• Condition and presentation create your leverage. Buyers have choices, so homes that show well win attention faster.
• Plan for a longer runway. If your goal is top dollar, prep and smart positioning beat waiting and hoping.

January 2026 Numbers at a Glance

Here are the specific indicators most people care about when deciding what to do this spring (single-family/patio homes).

FAQs: Colorado Springs and the Greater El Paso County Housing Market (January 2026)

Is the Colorado Springs housing market slowing down in 2026?

The market is moving at a more measured pace. January sales were down from December, which is typical seasonally, while inventory and days on market increased. The bigger story is balance returning, not demand disappearing.

Are home prices dropping in Colorado Springs right now?

January pricing held relatively steady. The median and average single-family sale prices increased month over month, while year over year pricing is slightly softer. That pattern is consistent with stabilization, not a major price slide.

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

If you value options and negotiation power, this market is improving for buyers because supply is higher than late 2025. The best outcomes still go to prepared buyers who can act when the right home appears.

Should sellers wait until later in 2026 to list?

Not necessarily. A rising-inventory environment rewards sellers who price correctly and present well. If you wait, you may face more competition. A smart strategy is to price based on current data and position your home to stand out early in the spring season.

Want a Calm, Data-Based Plan for Your Move?

If you are buying or selling in the Colorado Springs–area market this spring, the most productive next step is not guessing or reacting to headlines. It is aligning your timeline, price point, and expectations with what the market is actually doing right now.

At Beaton Brothers Property Experts, we help clients cut through the noise. We look at current inventory levels, recent comparable sales, price-reduction patterns, and neighborhood-specific demand to build a clear, realistic plan for your move. No pressure. No exaggerated forecasts. Just accurate data and thoughtful strategy.

Whether you are exploring options, actively preparing to list, or watching for the right buying opportunity, we will walk you through the numbers and explain what they mean for you, specifically.

If you want clarity instead of hype, we are happy to help you map out your next move with confidence.