Legacy Properties West Sotheby’s International Realty is excited to share our third-quarter 2025 Market Report, highlighting current trends and comparing performance with the same period in 2024. Our goal is to help you navigate today’s dynamic real estate landscape with insight and confidence.

When it comes to buying or selling a home, we understand it is one of the most significant investments you will ever make. By closely monitoring market shifts and regional nuances, we aim to provide clarity and context as the year draws to a close.

Regional Overview

Market performance across Southwest Colorado showed both growth and adjustments. Although many communities experienced increasing home values, the rate of sales decelerated, indicating a shift towards a more balanced market between buyers and sellers. Overall, prices stayed robust, but homes took more time to sell compared to the same period in 2024. Buyers are gaining more time and negotiating power, while sellers still benefit from years of steady gains appreciation.

Durango Market Trends

The in-town Durango market showed a mix of cooling and resilience this quarter. 

• Homes below $1 million softened, with the median price slipping 8% and homes spending 23% longer on the market.

• In contrast, luxury properties above $1 million strengthened, with the median price rising 14% to $1.5 million and the number of sales up 11% year over year. 

While mid-range homes are normalizing, demand for high-end listings remains steady, supported by limited inventory and Durango’s continued appeal as a lifestyle destination.

Durango Mountain Area

The Durango Mountain market showed a clear split this quarter. 

• Luxury homes and townhomes above $1 million rose sharply, with median prices climbing 24–38% and the highest sale reaching $5.1 million, a 49% increase from last year.

• Condos and lower-priced townhomes, however, saw prices decline, with condos down 33% and smaller townhomes down 13%. 

Despite mixed pricing, overall demand for well-located, high-end mountain properties remained strong, and the average days on market improved significantly for attached homes.

Bayfield, Mancos, and Surrounding Communities

Bayfield remained consistent, posting 11% growth in homes under $1 million and a median price of $545,000. While homes are taking longer to sell, steady demand continues to support values.

Mancos recorded one of the region’s most dramatic shifts, with median prices climbing 60% to $665,000. The gain was accompanied by fewer total transactions, reflecting a smaller pool of available homes.

Nearby Dolores and Cortez also posted solid gains, with single-family homes up 9% and condos and townhomes up 12%.

Pagosa Springs

The Pagosa Springs market cooled slightly in the third quarter. 

• Homes under $1 million dipped 2% to a median of $595,000, while luxury properties above $1 million fell 15% to a median of $1.34 million.

• The condo and townhome segment declined 19%, though days on market improved modestly. 

Overall, Pagosa Springs continues to show stable demand, with pricing adjustments reflecting a more balanced market as buyers take a measured approach heading into year’s end.

Looking Ahead

The third quarter of 2025 highlights a market that continues to evolve toward equilibrium. Appreciation remains evident across much of Southwest Colorado, yet slower sales and longer marketing times are bringing greater stability.

For buyers, this means more time to explore options and negotiate confidently. For sellers, property values remain historically strong, supported by limited inventory and enduring regional appeal.

At Legacy Properties West Sotheby’s International Realty, we combine decades of local experience with global reach to help you make the most of today’s opportunities. Whether you are buying, selling, or simply monitoring the market, our team is here to guide you with insight and expertise.