August’s market numbers are painting a more cautious picture across Southwest Colorado. Buyer urgency is tapering off, inventory is building, and listings are sitting longer. But there's still solid movement—if you're priced right and positioned smartly. Let’s break down what’s really happening in the market and where the opportunities are hiding.
Market Snapshot by County
Here’s a closer look at how the seven Southwest Colorado counties performed in August:
- La Plata County continued to lead in activity, with 100 homes sold at an average sales price of $1,091,727. Inventory rose to 464 active listings, and average days on market jumped to 101. Homes are taking longer to move, but demand for well-presented listings remains strong—particularly in Durango’s higher-end market.
- Archuleta County saw 38 sales with a holding pattern in price—$774,102 average, virtually flat year-over-year. Homes sat 130 days on average, and inventory rose slightly to 303 active listings. Buyers are taking their time, and sellers need to come to the table with clean, market-ready listings.
- San Juan County logged just 2 sales, averaging $741,000. This thin, high-alpine market remains a niche zone for buyers seeking quiet and views—speed and volume just aren't part of the equation here.
- San Miguel County (home to Telluride) reported 7 sales, averaging $1,511,857—the highest price point in the region. But with 80 active listings and 233 days on market, this luxury segment is showing signs of strain. Ultra-high-end homes are taking time, and buyers are negotiating more heavily.
- Montezuma County stayed relatively affordable, with 25 homes sold at an average of $545,692. With 220 listings and homes taking 110 days to sell, this county remains attractive to budget-conscious buyers—but patience is a theme.
- Montrose County maintained strong activity, reporting 53 sales at an average of $556,319. DOM held low at 87, and 289 listings were on the market. This area continues to show consistent value and buyer interest, particularly in the mid-range.
- Ouray County moved 18 homes at a high average price of $892,633. DOM reached 141 days, and 104 active listings suggest some overhang at the higher end. Expect continued price sensitivity unless homes are priced aggressively.
Comprehensive Year-Over-Year Insights
Let’s look at how August 2025 compares to recent years:
Sold Listings: With 243 homes sold, we’re down 9% vs. 2024 and nearly 20% vs. 2023, reflecting buyers' growing hesitation and summer fatigue. It’s not a full slowdown—just a more deliberate market.
Average Days on Market: DOM climbed to 140, up 56.4% from 2024 and 63.4% from 2023. Homes are sitting longer—nearly five months in many cases—making it harder for sellers to hold firm on pricing.
Average Sales Price: The regional average dropped to $873,333, a 14.8% decrease from last year. While this looks steep, it mostly reflects a lighter luxury mix, not widespread price collapse. Compared to 2015, prices are still up a staggering 210%—a sign of long-term health.
Active Listings: Inventory climbed again to 1,503 listings, up 17.9% vs. 2024 and 45.6% vs. 2023. Compared to 2015, supply is still 32% lower, so we’re not in an oversupply environment—just returning to more balanced market conditions.
In-Depth Analysis of Specific Markets
Durango
Durango’s average sale price spiked to $1,300,642, thanks to several high-end closings, but don’t let that number fool you—homes are taking longer to sell (106 DOM, up 41.3% YoY), and inventory rose 31.6%. Buyers still want Durango, but they're more selective, and overpriced listings are getting skipped.
Takeaway: Luxury buyers are back, but cautious. Sellers should be prepared for longer marketing timelines and a sharper pricing strategy.
Pagosa Springs
Sales dropped 20.8%, but the average price held steady at $774,102. Days on market ticked up to 130, and inventory rose nearly 18%. This is one of the more buyer-friendly markets right now, with leverage shifting fast.
Takeaway: Sellers need to be aggressive with pricing, while buyers can negotiate closing costs, repairs, or even rate buydowns.
Bayfield
Bayfield had a strong August: 23 homes sold (up 35.3% YoY) with a manageable DOM of 79 days. Prices softened to $478,457, down 7.8%, likely due to a more entry-level mix.
Takeaway: Bayfield is quietly emerging as one of the most active submarkets. It’s drawing serious buyer interest at more approachable price points, especially for first-time or relocation buyers priced out of Durango.
Strategic Takeaways for Buyers and Sellers
The Southwest Colorado real estate market is no longer moving at lightning speed—but it’s still moving, if you're smart about it.
For Buyers:
You’ve got more inventory, more time, and more negotiating power—especially in Pagosa Springs, Montezuma, and even parts of Durango where listings are sitting.
Look for homes on the market 45+ days—these sellers are more likely to offer rate buydowns or closing credits.
In faster submarkets like Bayfield and Montrose, expect competition for clean, well-priced listings.
For Sellers:
Time is your enemy. If you’re on the market longer than a month with no bites, it’s likely a price or presentation issue.
Buyers are watching for signs of overpricing and outdated finishes—clean, staged, and accurately priced homes are still getting offers.
Consider incentives like rate buydowns or closing cost coverage to increase buyer interest without dropping your list price outright.
Final Thoughts
August continued the market shift we’ve been tracking all summer: more listings, longer marketing times, and softer pricing in most areas. But this isn’t a collapse—it’s a return to fundamentals. If you’re a buyer, this is your chance to shop smart. If you’re a seller, strategy and precision are your best tools.
Want to understand what this means for your specific neighborhood or price range?
Let’s break it down together. Book your FREE Consultation today by clicking here.
