Real Estate Market in Denver Metro – July 2025
The Denver Metro real estate market has seen some significant shifts as we move through July 2025. Here's a snapshot of the current trends and developments:
Increased Inventory: The housing market in Denver Metro is transitioning from a strong seller's market to a more balanced one. As of May 2025, active listings have surged by 48% from the previous year, marking the highest inventory level since 2011. This increase offers buyers more choices and less competition. Source
Price Stability: Home prices have shown only modest increases, with the median closed price at $604,000 in April 2025, up just 1% from the previous year. This stability indicates a market moving towards balance, where prices are no longer skyrocketing. Source
Extended Time on Market: Properties are spending more time on the market, averaging 30 days in May 2025, up from 26 days in the previous year. This trend suggests that buyers are taking their time before making purchasing decisions. Source
Elevated Mortgage Rates: The rise in inventory is coupled with elevated mortgage rates. As of April 2025, the 30-year fixed mortgage rate was at 6.93%, impacting both affordability and buyer demand. Source
Mortgage Trends in July 2025
On the mortgage front, there is a notable stability in interest rates across the U.S.:
Stable Interest Rates: The average 30-year fixed mortgage rate is around 6.86%. This relative stability is attributed to the Federal Reserve's decision to maintain its benchmark interest rate, a move that has been anticipated to continue into July. Source
Forecasts:
- Mortgage Bankers Association (MBA) predicts an average of 6.8% for the third quarter of 2025.
- Fannie Mae expects rates to average 6.6% in the same period.
- Wells Fargo forecasts a gradual decline to 6.3% by the end of the year. Source
Investment Considerations: Despite the challenges with high mortgage rates and limited inventory, there are investment opportunities in mortgage-related securities. For instance, ETFs like VanEck Mortgage REIT Income ETF, iShares Mortgage Real Estate ETF, and Vanguard Real Estate Index Fund ETF provide exposure to mortgage REITs and reflect current trends.
Overall, while the Denver Metro market and mortgage rates present certain challenges, they also offer opportunities—especially for buyers looking for negotiating power or investors seeking exposure to real estate markets. As always, staying informed about broader economic indicators and Fed policies will be crucial for making sound real estate decisions.
