Colorado Springs sees highest increase in million-dollar home sales in U.S for

COLORADO SPRINGS, Colo. (KRDO) – New data from Realtor.com shows that Colorado Springs saw one of the biggest increases in home sales, with a price tag of one million dollars or more. Experts say that interest rates and the budgets for those shopping are driving that trend, and local data shows the Springs has higher priced homes than the rest of the U.S.

Realtor.com reports that sales increased by 6.3% last year, joining the likes of Seattle, WA, and Durham, NC, as the cities with the highest bumps in sales for million-dollar homes.

Furthermore, Realtor.com stated that 14% of all home sales in the Springs were for homes priced in the seven figures or more.

So Why the Trend?

Local realtors and analysts with Realtor.com both say it’s due to interest rates deterring first-time and average home-buyers from grabbing that home. Instead, they say those with ample cash on hand are able to put large down payments onto higher-priced homes and purchase properties without much hesitation.

“The buyers that are buying closer to the median are maybe staying out of the market, and we’re seeing this uptick in higher income, higher earning, higher buying power buyers in the market,” explained Hannah Jones, a Senior Economic Research Analyst with Realtor.com.

Data shared by Data Driven Economic Strategies, a local firm based in the Pikes Peak Region shows what exactly the real estate market looks like for those buyers in Colorado Springs:

In December 2024, when compared to the rest of the United States, Colorado Springs shows to have a large portion, about 16% fewer homes that cost under $300,000.

Then, by comparison, the Springs has just slightly more homes between the $300,000 and $500,000 range.

However, what stands out the most is 37% of listings falling under the $500,000 to $800,000 range, which is more than double the average for the U.S.

Houses within the city, seen on Realtor.com on Tuesday,in the Old North End, near Bear Creek Park and the Broadmoor, as well as dozens more in the northern part of the city, show price tags at $1 million or higher.

“So we are seeing that higher-end market move at a quicker pace and maybe the lower-end market,” explained Justin Hermes, the owner of The Property Group in downtown Colorado Springs.

Jones with Realtor.com, goes on to add that the demand for those homes, is directly tied to large-scale development in lots of cities in the U.S., such as Colorado Springs, which is no stranger to growth.

“In some areas, there are, you know, more homes in that higher price tier, especially in areas that are still seeing pretty decent housing demand,” said Jones.

She also said that there is some optimism for more affordable prices to come back for home buyers after the pandemic spiked both demand and prices.

“Inventory levels got very low, home prices got very high. And so those markets really dried up. And now what we’re seeing is that more affordable inventory is coming online.” explained Jones. “But because of how high mortgage rates are, yeah, they’re just not it’s just still not quite at the point that we’re seeing a big uptick in buyer demand or buy activity,” she added.

It is worth noting, that data from the Pikes Peak Regional Building Department shows that in 2024 there were 46 permits that were approved for projects that were valued at, or over, $1 million within Colorado Springs, however, that was out of nearly 1,500 permits that were granted for single-family homes.