June 2025 El Paso County Real Estate Market Update

By Derek and Mariana Wagner

Since launching their real estate careers together on September 11, 2001, Derek and Mariana Wagner have been a trusted team in the Colorado Springs market for over two decades.

We are currently experiencing a unique moment in the El Paso County real estate market. Interest rates are rising, and at the same time, the median sales price is also increasing. However, when reviewing individual home values and comparing them to last year, the trend appears to be heading in the opposite direction. Many properties show a decline in value year over year, which creates a disconnect that has become important to understand. Here’s everything you need to know.

Median prices are on the rise. When interest rates rise, median prices drop due to affordability. Buyers can qualify for less, which puts pressure on sellers to reduce their prices. This is the principle of affordability. But this year, despite higher interest rates, the median price is climbing. The explanation lies in the definition of the median price. It is not the average. It means half of the homes sold for more and half for less than that price point. If more higher-priced homes are selling, especially in the luxury market, it pulls the median price upward, even if lower-priced homes are struggling

Buyer sensitivity. The high-end segment of the market is active, while the more affordable segment is more competitive and slower. Buyers looking below the median price point are more cautious. They are more sensitive to monthly payments and area preferences. Many of the buyers in the higher-priced segment have more financial flexibility and are less affected by changes in mortgage rates. They often use other resources besides traditional loans and are not as impacted by rate fluctuations.

For buyers who once qualified for $600,000 but are now approved for $575,000, adjusting expectations is difficult. Many of these buyers have already seen what $600,000 can buy, and it is hard to settle for less. As a result, many are choosing to wait for the right property at their new price point. Sellers are starting to respond to this. Whether motivated by relocation, family changes, or other reasons, some are reducing their list prices to match current demand.

Real estate beauty contest. Buyers are also more selective and less willing to compromise. Many now lead with low offers and expect move-in-ready homes. They are no longer interested in projects or renovations. Homes that require work are quickly passed over, even if they are priced well. In today’s market, it truly is a beauty contest. Homes need to be well-prepared, well-presented, and competitively priced. Sellers also need to make the home easily accessible for showings. Any friction in the process may cause a buyer to move on to another listing.

Seller awareness is key. With current inventory levels, new listings are constantly appearing. Buyers feel less urgency, knowing that more options will be available soon. Price reductions are happening across the board, even among million-dollar homes. Sellers must stay up to date with market conditions at the hyper-local level, not just the county or city averages. Knowing how a specific home compares to immediate competitors is more important than ever.

The current market requires awareness and adaptability. A seller may see their home value decline while hearing reports of rising median prices. Both can be true. It is important to understand the dynamics of today’s buyers and position each home accordingly. If you have questions or need guidance, just reach out. You can call us at 719-437-7311 or send an email to derekandmariana@artisangroupco.com. I look forward to hearing from you.