July 2025 Real Estate Market Update – Rising Rates, Delistings & Inventory Shifts in Colorado

Market Update

Rising Rates, Stubborn Sellers & Selective Buyers Are Defining the Summer

It’s been a strange summer for real estate — a mix of more choices, rising costs, and strategic hesitations on both sides of the deal.

📉 Rates Are Creeping Up Again
After dipping in early summer, mortgage rates are back on the rise. Why? Inflation is running hotter than expected, thanks in part to new tariffs pushing up prices on imported goods. June’s consumer price index (CPI) jumped to 2.67% year-over-year, with core inflation even higher at 2.91%. That’s enough to rattle investors and push 10-year Treasury yields — which often predict mortgage rates — up to 4.49%.

→ Bottom line: The Fed is hitting pause. Investors are now betting against a rate cut in July, and even a September cut is looking shaky. As a result, 30-year mortgage rates, which had dipped to around 6.64%, are rising again.

📦 Inventory Is Up — But So Are Delistings
Active listings hit a post-pandemic high in June, up 28.1% from last year — with big jumps in places like Las Vegas (+77%) and the South (+30%). But here’s the twist: Delistings are also surging. Sellers are increasingly pulling their homes off the market if they’re not getting the price they want. Delistings jumped 47% year-over-year in May, outpacing new inventory growth.

Many sellers are standing firm, backed by strong equity and peak-price mindsets. Meanwhile, buyers — now armed with more options — are getting more selective and less urgent.

📉 Price Cuts Are Up Too — But Not Everywhere
Roughly 1 in 5 homes saw a price reduction in June — the highest for that month since 2016 — but the national median list price is still holding at around $440,950.

📊 What It All Means for You

  • Buyers: More inventory means more leverage — but don’t wait too long. If rates climb further, monthly payments will too.

  • Sellers: The longer a property sits, the more pressure builds. Pricing it right from the jump is key. If you’re not getting traction, don’t just delist — reassess your strategy.

  • Investors and Agents: This is a data-driven market. Understanding timing, interest rates, and local inventory shifts is critical to winning the deal.

As Realtor.com’s chief economist put it: “This year’s market is a study in contrasts.” At Big Frontier Group, we agree — and we’re here to guide you through the complexity with straight talk, local knowledge, and smart strategy.