Inventory Gains Hold, Pricing Mixed Across Key Markets
As we transition into the heart of the summer selling season, May’s numbers confirm what many of us have been sensing on the ground: Southwest Colorado’s housing market remains active — but for the first time in nearly five years, we are seeing the dynamics of a true buyer’s market take hold.
Inventory levels climbed again last month, giving buyers more choice and shifting leverage firmly in their direction. Pricing and sales trends varied widely across different markets, but one theme is consistent: pressure on sellers is palpable, and we are seeing price reductions across the board as sellers compete for increasingly selective buyers.
Here’s a deeper dive into the numbers:
Click here to view the graphs for the May Market Recap.
Inventory Levels Continue Expanding
Across all 7 counties combined, active listings jumped to 1,270 homes — a 22.5% increase vs. May 2024, and a 52.8% increase compared to 2023. This follows April’s sharp inventory build and reinforces that sellers are returning to market.
Durango posted an even larger inventory bump: 305 listings, up 23% year over year, and up an impressive 72.3% vs. 2023. Pagosa Springs also saw healthy gains, with 262 active listings, up 20.7%.
Bayfield showed the most dramatic shift on this front, with inventory up 68.1% vs. last year and 75.6% vs. 2023 — another sign of renewed seller activity in this more moderately priced pocket.
Sales Activity Mixed by Market
Across the 7 counties, total sold listings held steady at 214 homes, nearly flat compared to last May but up 3.9% vs. 2023 — a sign that demand remains resilient even with higher inventory.
Durango was one of the strongest submarkets, with 61 closings (up 22% year over year). Bayfield, on the other hand, saw 14 closings, down from 19 closings last year. Pagosa Springs reported 33 sales, a slight dip from 36 sales in 2024, but still outperformed 2023 levels.
The key takeaway? Buyers remain engaged, but are moving with more intention — focusing on properties that are well-priced and move-in ready.
Pricing Trends: Divergence Continues
Average pricing remains highly local this year:
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La Plata County posted an average sales price of $889,005 — holding steady in the higher price tier.
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Durango’s average price hit $984,070, up 14.5% YoY and nearly $125K higher than a year ago.
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Pagosa Springs saw a small pullback to $679,228, down 8.7% vs. last year but still 36.1% above 2023 — reflecting ongoing volatility at this price point.
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Bayfield rose to $599,458, up 11.4% YoY — showing continued demand for well-priced inventory under $600K.
Across all 7 counties combined, the average sales price landed at $785,128 — down 32.4% compared to an outsized 2024 number skewed by a few luxury closings, but still 21.6% higher than 2023, signaling longer-term appreciation remains intact.
Days on Market Stabilizing
Average Days on Market (DOM) across the 7 counties came in at 113 days in May — down from 128 days in April, and virtually unchanged from 112 days in May 2023 and 114 days in May 2024.
In a broader context, DOM is still well below pre-pandemic averages — 143 days in 2019 and 172 days in 2020 — and only slightly higher than the fast-paced markets of 2021 (108 days) and 2022 (89 days).
Bottom line: we’re seeing a healthy, balanced pace of sales — but in a market where buyers are now setting the terms.
At the local level, Durango’s DOM rose to 100 days (up from 83 last year), while Pagosa Springs sits at 108 days, down from last year and 2 days higher than 2023. Bayfield came in at 82 days — the fastest among the three.
Key Takeaways
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Inventory growth is real — and so is pricing pressure. For buyers, this means more options and stronger negotiating power. For sellers, pricing and presentation are now critical — buyers are demanding value and negotiating hard.
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Pricing trends are highly local. Higher-end markets like Durango are still seeing upward price movement. In contrast, markets like Pagosa Springs are adjusting down from recent highs, and reductions are becoming commonplace across the region.
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Homes are moving at a healthy pace — when priced right. Days on Market is holding steady — but sellers must meet the market to attract serious buyers.
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We are in a buyer’s market — for the first time in nearly five years. With potential Fed rate cuts looming later this year, today’s buyers are negotiating with confidence, while sellers who miss the mark on pricing risk sitting on the market or chasing it downward.
As we move deeper into summer, the market is showing signs of balance — a welcome shift from the hyper-competitive years behind us. But savvy buyers and sellers alike should stay tuned: if rates do start to drop after the next Fed meeting, we could see another round of price pressure and bidding wars in desirable pockets.
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