Colorado’s housing market displayed cautious stabilization last month, as modest sales gains and increased inventory gave buyers more leverage.
However, higher mortgage rates and continuing global uncertainty are limiting optimism and affordability.
According to the March Market Trends Housing Report from the , last month recorded 12,803 new listings statewide with 9,541 pending sales, a 7% increase over the same month last year.
Closed sales reached 7,463, up about 3% from March last year. The statewide median sale price dipped slightly to $545,000, down about 1% year over year, suggesting that while the market remains active, pricing power is softening.
Active inventory in Colorado is 25,367 listings, with the average home remaining on the market for 70 days, up from 66 days last year.
Despite shifts in inventory, months of supply remained at 3.5, down about 3% from last March. Conditions still favor sellers, although the market is slowly moving toward greater balance.
“Day-to-day activity may feel busy, but that is likely because the year started off very slow,” said .
“Overall, this spring market is still behind where it usually is and has a long way to go to match the stronger spring markets of the past.”
Moye cited two key factors dampening buyer confidence: instability in Iran, which is affecting interest rates, and broader economic anxiety, which is dampening consumer sentiment.
Agents from Colorado Springs to Fort Collins report buyers are engaged but cautious, submitting offers in economic and international uncertainty.
The attached-home segment, including condos and townhomes, continues to face the most significant challenges statewide.
Average days on market for this segment rose by more than 15% to 76 days, with five months of supply, making it buyer-friendly.
In the attached-home market, high HOA fees—mainly due to rising insurance costs—continue to deter buyers and suppress demand across markets from Boulder and Broomfield to Weld County. This challenge further increases the difficulties this segment faces.
Regional differences shape Colorado’s housing market, with varying inventory, sales, and pricing trends across the state.
Durango saw a 35% rise in March sales, propelled by strong inventory and modest price gains, while inventory in Aurora and Centennial dropped by up to 45% in some zip codes, and prices softened by 1% to 8%.
“This year is going to be touch and go. I believe the spring rush is short-lived and a year of grinding is in front of us,” said .
The single-family segment remains strongest statewide, with contracts and closed sales exceeding those of attached homes in nearly all regions.
Well-priced, move-in-ready homes continue to attract competitive offers, while overpriced or poorly positioned listings remain on the market longer.
Looking ahead, the Colorado Association of Realtors anticipates mortgage rate trends to guide activity through the second quarter. Stability in rates will likely shape both buyer demand and market momentum.
If mortgage rates remain steady or decline, Colorado’s major markets may see a surge in closings. Conversely, higher rates due to geopolitical disruptions could slow activity and increase negotiations through the summer.
The news and editorial staffs of The Denver Post had no role in this postap preparation.
