The NOW Real Estate Scene: Mid Year 2025 Real Estate Thoughts

By Nancy Page Cooper | July 27, 2025

People love to talk about the real estate market. However, I’m currently seeing clients wring their hands and say, “Woe is me,” because they can’t sell their home quickly or buy one at an affordable price. Change is difficult, and it’s time for a slight adjustment to our real estate perspectives. Real estate is a cyclical market. For those of us who went through the manic buying of real estate for the no money down days in the early 2000s to the recession of 2008-2013, welcome to the current real estate cycle. Let’s talk about some key indicators and ways we can help our real estate buying and selling efforts.

The numbers tell of the increasing supply of listings vs. qualified buyers willing to pay the asking prices at the current interest rates. Current mortgages are between 6.5-7% for a conventional 30-year mortgage. Time on the market is still below 60 days in the Denver area. A balanced (buyer and seller) real estate market is about 6 months of inventory. The current supply is just over 3 months, which is typically considered a seller’s market. But that is not the entire story of why the market has shifted.

According to the Denver Metropolitan Realtor Association (DMAR), the following apply to the Denver market:

  • Overall listings are down from June 2024 to June 2025 by 3%.
  • Prices are up about 2% for the year.
  • Days on market are up 5 days from last year to 31 days.

What Changed in the Denver Area Market?

Beginning in 2024 through now, the routine real estate selling process of listing your home on day one and then sifting through all offers has passed. Now, properties are longer on the market, and buyers may not be willing to offer prices over list price with no inspections. Let’s hope the buyers have become smarter consumers.

In addition, according to DMAR, 80% of current owners who owe a balance on their home pay mortgages under a 6% interest rate. Sellers are reluctant to list their homes, only to face additional relocation costs and potential new mortgages at much higher rates.

According to ChatGPT and the U.S. Bureau of Labor Statistics from 2023, 53% of homeowners aged 65 and over have no mortgage on their primary residence and 59% of homeowners aged 75 and over are mortgage free. This means there are over 13.2 million mortgage-free households among those aged 65. The sellers’ motivation to sell is missing. When current homeowners choose not to sell, it can make it much harder for the next wave of buyers to find and purchase a home.

It’s not time to hit the panic button! We need to let go of some preconceived ideas about past real estate trends and focus on what the market looks like today.

Real Estate Now

The market is not the same as the real estate recession of 2008-2011. Foreclosures and short sales are not an everyday part of working in real estate. Supply is available for resale homes and new builds. However, there may be a significant disconnect between sellers’ and buyers’ expectations.

  • Covid is no longer a factor for buying homes sight unseen, or with no inspections or overbidding for a home. The “panic” of moving to a nonurban area is not quite as strong. The market is adjusting to a more realistic pace.
  • Mortgages are no longer offered in the 0 to 2 percent range, and my sources say that era has passed.
  • Buyers aren’t likely to engage in bidding wars for your property when there are hundreds or even thousands of other listings available. Pricing needs to be strategic and paired with the most effective marketing systems and technologies to create demand and motivate buyers to purchase your home at a fair price.

A Few Tips for Current Sellers

There are still buyers ready to purchase your home—if it’s priced correctly and its condition and updates support the asking price. Many buyers today are looking for homes they consider “move-in ready.” Of course, that definition varies from buyer to buyer, so, Mr. or Ms. Seller, it means you need to view your home through the eyes of a potential buyer. Everything should be in working order, with clean and inviting interiors and strong curb appeal.

According to Realtor.com, 20.7% of listings in June 2025 had price reductions. In plain terms, that means buyers didn’t believe those homes were worth the asking price. In this market, greed is a five-letter word that can cost you a sale. Be realistic—and be flexible.

A Few Tips for Current Buyers

There are still homes available within an affordable price range. The key is understanding that your first home—or your next move-up purchase—may not check every box on your real estate wish list. Try viewing a home purchase as a way to build long-term wealth or as a crucial steppingstone toward creating your own real estate empire.

Connect with a mortgage broker to explore current home buying programs or available financial assistance. You can also build a compelling case for family or friends who might help financially, showing them how their support could become a smart future investment for everyone involved.

The most important step is getting qualified to buy when the right property becomes available. Trust your team of real estate professionals to guide you with sound advice and realistic expectations.

If current mortgage rates are higher than you’re comfortable with, remember—refinancing is a powerful tool many homeowners use to improve their financial picture when the timing is right. Buy when you can; refinance when it’s smart.

The NOW Mortgage Scene

I asked Matt Carrell from Guild Mortgage to answer a few questions for us on the state of mortgages for the remainder of 2025.

What are you seeing regarding mortgages? What is the general tone?

The general tone of the mortgage market—and, more importantly, buyers’ perception of it—is one of acceptance. That means I’m rarely getting calls from prospective buyers asking if I think rates are going lower. Overall, buyers entering the market have somewhat capitulated and accepted that rates are what they are. They’re increasingly asking for seller concessions to help pay for temporary rate buydowns when the market allows.

What types of programs are helpful?

There are a number of programs for buyers. Below is a list of programs I will be happy to discuss.

* The borrower must meet qualifying guidelines

What do you think will happen with mortgages for the rest of this year?

There are predictions for rate cuts by the Federal Reserve later this year. Now, don’t get too excited. When the Fed cuts the rate, they’re only reducing the overnight lending rate—far different from a 30-year mortgage rate. However, there could be some easing in inflation, employment, and the general economy. If these bigger picture items ease, mortgage rates might come down. The big unknowns come from D.C. How will tariffs eventually impact our economy? What will happen with global conflict? There are lots of unknowns that could affect mortgage rates.

If you have any questions, give me a call or email me using my contact information below.

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