Looking Forward to 2026
The past three years we have seen the local real estate market stabilize after the insanity of2020-2022. However, the return to normality probably has felt painful for many because the growth has been minimal. For example annual sales in 2021 was nearly 15,000 units compared to just over 9000 each of the past three years, sales prices have been increasing1%-2% the past three years compared to 15%-20% a few years ago, and mortgage rates have dropped below the historical average of 7.7% to around 6%, but that is still double what they were in 2021.
Looking ahead to 2026, the Colorado Springs housing market appears positioned for renewed activity, thanks to its stability and anticipated sub-6% mortgage rates. With the recent announcement that the Fed will begin to buy $200 billion in mortgage backed securities, mortgage rates will get below 6% this year which will bring more buyers off the sidelines.
There is some concern with the Fed artificially lowering mortgage rates because there continues to be a lack of housing in Colorado Springs to the tune of about 25,000 units. If demand is too strong and inventory remains constrained, home prices could escalate beyond a healthy 3%–5%. Closed sales will follow suit, with total units climbing 5% or more as confidence improves.
More good news is that even with stronger demand, the average number of active listings locally is expected to remain relatively steady. This is because we expect more of the homeowners who have been putting off selling their homes (because they have a 3%mortgage) to list their properties as they need to move for a job or perhaps they need to downsize or upsize.
Economic uncertainty will likely remain a factor which will temper down some buyer interest. Buyers will continue to watch the broader economy closely, including the impact of tariffs and their effect on inflation, jobs, and consumer confidence. We should really begin to see what the effects will be from the current administrations policies this year.
Bottom Line for 2026
- More buyers return as rates continue to improve
- Prices rise modestly
- Inventory remains inadequate
OLYMPIC CITY USA IS STILL THE GOLD STANDARD
Natural Beauty
Pikes Peak, remarkable open spaces including Garden of the Gods, Cheyenne Canyon, Palmer Park, Cheyenne Mountain State Park, world class trails & outdoor activities
Proud Military Town
Home to the United States Air Force Academy, Fort Carson, Peterson AFB, Schriever AFB, Northern Command, Norad
Amateur Sports Capital
US Olympic Committee, US Olympic Training Center, USAFA D1 sports, Colorado College D1 men’s hockey & women’s soccer, 23 Olympic NGBs
Outstanding Higher Education
US Air Force Academy, University of Colorado at Colorado Springs, Colorado College, and Pikes Peak State College
Iconic Cultural Opportunities
Cheyenne Mountain Zoo, US Olympic and Paralympic Museum, Space Foundation, Pro Rodeo Hall of Fame
Diverse Industries
Aerospace, Healthcare, Cybersecurity, Defense Technology, Military, Manufacturing, Sports, And Tourism
Event Venues
The Broadmoor Resort Hotel & Convention Center, Fine Arts Center, The Broadmoor World Arena & Pikes Peak Center, Weidner Field, Robson Arena, Ford Amphitheatre, and the Ent Center for Performing Arts