Home prices in Colorado are finally behaving the way that market economics would predict they should, following two years of flat-to-declining real estate sales. They’ve leveled out.

That’s according to the newest Market Trends report by the Colorado Association of Realtors.

The report shows the median price of a single-family home in the state dropped a fraction of a percent last month, to $580,000. The median single-family price in October 2024 had stood at $584,000.

Meanwhile, the median price for condos and townhomes has dropped 2.4% over the course of the year, to $415,000.

Prices for single-family homes had continued to rise marginally through most of the year, despite a rise in inventory of homes for sale. Statewide inventory now, according to the report, stands at 30,800 units on the market, compared to 29,450 homes a year back.

DOWNWARD TREND

But the number of home sales completed across the state over the month continued to trend downward to 7,353 last month, from 7,504 a year ago, according to the report. The average time on the market required for a home to sell is now 68 days, slightly higher than a year ago.

Agents, however, are reporting that homes are still fetching around 98% of their list prices, despite the slower sales.

Agents and other observers had puzzled at the continuing rise in home prices, as supply continued rising and sales were declining — a supply-demand situation that might otherwise have pushed prices to fall.

In Colorado Springs, agents were reporting a shift toward a more balanced market last month, as inventory rose to just short of 4,000 homes, the highest mark for an October in a decade. Prices have softened, with a median price dropping to $473,500.

Sales in that market had also dropped to the lowest level since 2013, although sales year-to-date were trending slightly higher, Colorado Springs agents said.

Down in Archuleta County the falloff in prices is notable, according to Keller Williams agent Wen Saunders, who reports on Pagosa Springs for Trends.

“Compared to October 2024, when sellers experienced significant price gains, the Pagosa Springs market reflects a notable shift toward buyer control,” she said.

“Median and average sales prices have declined both month-over-month and year-to-date, signaling a market recalibration following two years of elevated activity,” Saunders added.

Compass agent Kelly Moye, who reports on Boulder and Broomfield Counties, said that home prices have leveled out, but still show slight rises over the course of the year.

LONGER SALES TIMES

“While new listings have increased and homes are taking longer to sell, overall home prices in Boulder remain steady, holding approximately 1.6% higher than at the start of the year,” Moye said.

Meanwhile, the number of new listings in Boulder County was up 9.5% year-to-date, while sales had risen just 4.4%, failing to keep pace.

“Despite the shift, prices remain solid thanks to the region’s enduring desirability and limited land availability,” Moye said. Average days on the market before sale had increased to 60 days — and was higher still for condos and townhomes, 71 days, she noted.

“Higher HOA fees, driven in part by rising insurance premiums, have made these properties somewhat less appealing to first-time homebuyers, who remain sensitive to rising payments,” Moye added.

Despite the marginal decreases in price and the growing inventory of homes on the market, agents in some mountain ski resort towns were still reporting rising prices.

MOUNTAIN MARKETS

In Summit County, home to Keystone and Breckenridge, agents were reporting a rising sales momentum, with single-family sales climbing 73% over the year. Although a median-priced home ($1.85 million) marked a year-over-year decline of 7.5%, condo sales were holding steady at a median price of $755,000.

However, Marci Valicenti with The Group Real Estate, reporting on Steamboat and Routt County, said median prices in the resort town were down 8.8% over the year.

The market there had seen a single sale last month of $7.5 million and two sales each in the $5 million range, factors that can drive up the average price for the market. The average price, Valicenti said, continued to rise over the year, up 6%.