June gave us a clear read on the direction the market is heading—and while the headlines may suggest a slowdown, the truth is far more nuanced. Across Southwest Colorado, we’re still seeing solid buyer activity, but buyers are exercising more control than they have in recent years. Pricing is adjusting, and the data confirms it: sellers are no longer calling all the shots, and deals are being made by those who understand that reality.
Sales Activity Remains Strong, But Price Pressure Persists
Across all seven counties combined, we saw 216 homes sell in June—slightly up from this time last year. That’s notable considering the growing inventory and rising days on market. It tells us buyers are still active, they’re just more calculated in how—and when—they move.
But the standout story this month is price. The average sales price dropped 16.3% compared to June 2024. This is not a market in decline—this is a market recalibrating. Buyers aren’t rushing, and in most cases, they’re unwilling to stretch their budgets unless a home is priced appropriately or offers real value.
This pricing trend aligns with a 17.1% increase in active listings year-over-year. More inventory means more choice—and more choice gives buyers the upper hand in negotiations.
Q2: A Bigger Picture of Market Rebalancing
When we zoom out and look at the entire second quarter, the pricing shift becomes even more pronounced. Compared to Q2 of last year, the average sale price dropped over 30%. That’s not a typo. This was a correction, driven by increased inventory, cautious lending environments, and buyer fatigue.
Interestingly, days on market for Q2 remained relatively flat, which tells us homes are still moving if they’re priced right. The real difference is that sellers who didn’t adjust their price expectations likely watched their listings sit—and eventually get passed up.
Spotlight on Local Markets
Let’s talk local. Durango, Pagosa Springs, and Bayfield each tell their own story this month, and each is worth paying attention to.
Durango is seeing the effects of rising inventory most acutely. With over 26% more homes on the market than last June, buyers have room to negotiate—and they are. Sales were down slightly, and the average price fell by over 17%. Sellers who priced aggressively moved their properties. Sellers who held out? Many are still waiting.
In Pagosa Springs, pricing has taken an even bigger hit—down more than 20% year-over-year. But here’s the twist: inventory is up. Active listings rose more than 18% from last June, giving buyers more choices than they’ve had in years. It’s proof that homeowners are still eager to sell, but buyers are taking their time. The jump in days on market reinforces this—buyers are shopping carefully and moving only when the right opportunity appears.
Bayfield showed one of the most interesting patterns this month. Prices dropped nearly 26%, but homes that were priced right didn’t sit—DOM actually fell by more than 30%. That’s a clear signal of buyer motivation when the price is aligned with current expectations. Bayfield sellers who understood this had success, and quickly.
What Buyers and Sellers Need to Know
For buyers, the shift is in your favor. There’s more inventory. Prices are softer. And sellers are more open to negotiations than we’ve seen in recent years. But don’t let that fool you into thinking there’s no competition—well-priced homes are still moving fast, especially in more desirable locations or updated condition.
For sellers, strategy matters more than ever. The days of “testing the market” at aspirational prices are over. The listings that are selling are the ones that are dialed-in—on price, presentation, and terms. If you’re thinking about listing, this is the moment to price to sell, not to negotiate down. The market will reward realism.
Final Thoughts
We’re not in a downturn—we’re in a market that’s working the way it’s supposed to. Inventory is up, prices are correcting, and buyers are engaged. This is a healthier landscape than we’ve seen in some time. But to succeed in it, both buyers and sellers need to understand where the leverage lies.
If you’re a seller, now is the time to reposition with a competitive price, strong marketing, and a willingness to negotiate. If you’re a buyer, this is your chance to make a smart move while the market is still giving you some room.
Have questions about your specific neighborhood or property type? I’m happy to break down what this means for your goals.
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