The Colorado housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 4.0% year-over-year, settling at $582,700. This decline in sales price contrasts with the Median List Price, which has seen a slight increase of 0.8% YoY, reaching $630,700. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic conditions.

Price Per Square Foot metrics further illustrate the market's dynamics. The median Price Per Square Foot has decreased by 5.5% YoY to $270, indicating a downward pressure on property values. Conversely, the Median List Price per square foot has experienced a modest increase of 0.5%, now at $325. This discrepancy may reflect sellers' attempts to maintain higher asking prices despite market corrections.

Sales activity has also shown a downward trend, with the number of Homes Sold dropping by 10.3% YoY to 4,804 units. Pending Sales have decreased by 2.2% YoY, totaling 7,687. However, New Listings have increased by 4.1% YoY, reaching 8,591, suggesting that more homeowners are entering the market, possibly in response to changing economic conditions or personal circumstances.

Inventory levels have surged by 25.4% YoY, now standing at 20,006 units. This increase in inventory, coupled with a significant rise in Months of Supply by 120.0% YoY to 4.20 months, indicates a shift towards a more balanced market, potentially favoring buyers. The Median Days on Market have increased by 14.0% YoY to 59 days, further highlighting the cooling pace of sales.

The average sale to list ratio has slightly decreased by 0.3% YoY to 98.5%, suggesting that homes are selling closer to their list prices, albeit with minor concessions. The percentage of Homes Sold above list price has declined by 2.7% YoY to 21.3%, reflecting reduced competition among buyers. Additionally, the proportion of Price Drops has increased by 4.5% YoY to 27.8%, indicating that sellers are adjusting their expectations to align with market realities.

Finally, the percentage of homes going off the market within two weeks has decreased by 5.7% YoY to 34.6%, suggesting a slower pace of transactions. This trend may be attributed to buyers taking more time to evaluate their options in a market with increasing inventory and stabilizing prices.

Overall, the Colorado housing market in February 2025 is characterized by a cooling trend, with declining sales prices and increased inventory levels. While sellers are adjusting their strategies, buyers may find more opportunities as the market shifts towards a more balanced state.