D
espite a continued slowdown, Custer County’s housing market has kept prices flat for a second consecutive year. The drop in sales volume—down 24% from the same period in 2024—mirrors the lowest activity seen since 2014, yet the average price has not slipped. Analysts attribute the sluggishness to persistently high mortgage rates that dampen buyer demand. Nevertheless, cash purchasers have sustained a portion of the transaction flow, helping to anchor prices.

    Data supplied by the county assessor’s office confirm the 24% decline, while the 2021 pandemic peak remains the most active year on record, driven by record‑low 30‑year mortgage rates that made high‑priced homes affordable on a monthly basis.

    Following 2021, the Federal Reserve began tightening policy to curb inflation, raising rates sharply. Economists warned that such hikes would erode home values, yet nationwide prices have largely held steady. On Colorado’s Front Range, existing‑home prices fell roughly 7%, according to Lance Lambert, owner of the real‑estate‑tracking platform Resi‑Club. In contrast, Custer County’s prices rose 1.8% over the past year.

    Interviews with local real‑estate agents reveal a renewed interest as long‑term rates have begun to decline again. The Wall Street Journal reports 30‑year mortgage rates at 6.24%, down from 7.42% a year ago.

    This combination of steady prices, reduced sales volume, and a modest rebound in rates paints a complex picture for Custer County’s market, with cash buyers and falling rates offering a glimmer of stability amid broader economic tightening.