Colorado Springs ranks as the nation's No. 1 housing market for 2025, thanks to hefty increases in home sales and prices, according to an annual forecast released Tuesday for the nation's 100 largest metro areas by Realtor.com, the California-based online real estate service.
The Springs' top spot results from a 27.1% expected jump in the number of home sales in 2025 compared to 2024, and a 12.7% year-over-year predicted appreciation in prices, Realtor.com says. Combined, those two percentage increases gave the city the No. 1 ranking in Realtor.com's forecast for next year.
Other metro areas that make up Realtor.com's top 10 housing markets for 2025 were: Miami-Fort Lauderdale-West Palm Beach, Fla.; Virginia Beach-Norfolk-Newport News, Va.-N.C.; El Paso, Texas; Richmond, Va.; Orlando-Kissimmee-Sanford, Fla.; McAllen-Edinburg-Mission, Texas; Phoenix-Mesa-Scottsdale, Ariz.; Atlanta-Sandy Springs-Roswell, Ga.; and Greensboro-High Point, N.C.
Denver-Aurora-Lakewood, the only other Colorado metro area in the report, came in at No. 20 in Realtor.com's rankings.
While a No. 1 ranking in almost any national report is usually something that business people and civic leaders celebrate, some local real estate agents suggest Realtor.com's forecast for Colorado Springs is unrealistic.
For several years leading up to 2022, mortgage rates had fallen to 3% and below, which fueled a homebuying frenzy and sent housing prices skyrocketing in the Springs and elsewhere.
Beginning in spring 2022, however, mortgage rates began to rise and have since more than doubled. Last week, 30-year, fixed-rate mortgages averaged 6.69% nationally, according to mortgage buyer Freddie Mac.
Only a drop in long-term mortgage rates below 6% would stoke demand and send prices higher.
Through the first 11 months of this year, Colorado Springs-area home sales are running 3.1% below those of the same period in 2023, according to the Pikes Peak Association of Realtors' latest market trends report.
An ample supply of area homes for sales — 3,000 as of Monday — will hold down prices, one agent said. He was scheduled to show a home this week to a prospective buyer; the house has been on the market for six weeks and the sellers have reduced their asking price.
"It's not like we're back down to all the houses are gone and everybody's bidding them up again," he said.
A series of job announcements over the last few years by Colorado Springs business leaders, meanwhile, is good news for the economy and local housing market, he said. And yet, the Springs' progress on the job front hasn't even surpassed that of Denver, and so it's hard to believe the local housing market will be tops in the nation next year.
Lawrence Yun, the chief economist for the National Association of Realtors, recently predicted that home sales nationally would rise by about 10% in 2025 and prices would increase by just 2%, Van Wieren said. But it's doubtful that Colorado Springs is going to significantly exceed those projections, he said.
"To be that far above the rest of the country, that looks from where I'm sitting, and I could just be sitting in the wrong chair right now ... I'm suspicious," Van Wieren said.
Realtor.com, however, is sticking with its forecast.
"While we don't have a history of commenting on others' opinions of our forecast, our models suggest that Colorado Springs is poised to be an overperformer in the housing market in 2025," Ralph McLaughlin, Realtor.com senior economist, said via email.
"This is due to not only a low benchmark in home sales and price growth set in 2024, but expectations of a growing tech sector that will benefit greatly from increased federal investment in microprocessors, aerospace, and computer systems design," McLaughlin said. "On top of this, Colorado Springs is experiencing growth in tourism-related investment and employment as it further cements itself as a hub for domestic outdoor recreation. These conditions support robust housing market growth in 2025 and beyond."
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