Michael RushReal Estate Broker, Keller Williams Realty DTC · Real Estate Broker at Keller Williams Realty DTC

June 2025 | Colorado Housing Market Update 🏡

27 Jun 2025 · 3 min

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2:48

In this June 2025 market update, the presenter links national economic conditions to Colorado’s housing trends. The U.S. May jobs report showed a stable labor market with nonfarm payrolls up 139,000 and unemployment steady at 4.2%, while the Federal Reserve kept its policy rate at 4.25‑4.5% amid internal debate over future cuts. Mortgage rates for a 30‑year fixed have eased slightly to about 6.7%, down from 6.9% a year ago, offering modest relief for buyers. Regionally, the greater Denver market sees inventory surge 72% YoY, especially under $500k, with single‑family home prices up just over 2%. In Colorado Springs/El Paso County, detached home prices rose but condos/townhomes fell 4‑7% as inventory rose 29% and demand softened. Boulder experiences broad growth with inventory up 30% and demand up 16.4% YoY. Larimer County shows price declines across housing types, inventory up 34.5% and demand barely up 4.5%. Weld County presents a mixed picture: single‑family prices up, condo/townhome prices down, inventory up 23% and demand up 19%. Across the Front Range, supply sits at roughly 3‑4.5 months, shifting the market toward buyer‑favorability, especially for lower‑priced homes. The presenter advises sellers to price strategically, noting softening condo prices and insurance challenges, while emphasizing that affordability remains a concern despite stable but elevated mortgage rates. The overall message is that the national economy remains steady, mortgage rates are cooling, and Colorado’s housing market is moving toward balance, with rising inventory and slowing appreciation, making quick, informed action essential for both buyers and sellers.

Chapters

Let's dive into what's shaping national and Colorado markets. May's U.S. jobs report showed a stable labor market. Nonfarm payrolls grew by 139,000, and unemployment stayed at 4.2% for the second month in a row. The unemployment rate remains within its recent 4 to 4.2% range, signaling continued economic stability. At the June 18th meeting, the Fed held rates at 4.25% to 4.5%, though officials are split. Some urge caution and others favor cuts. Mortgage rates have eased to about 6.7% for 30-year fixed, which is a slight dip from last week, and it's down from last year at this time, which was at 6.9%. Still high, but edging in the right direction, signaling modest relief for buyers. Here in the greater Denver area, inventory is up 72% year over year, with much of the increases under the $500,000 price mark, driven primarily by condos and townhomes. Single-family homes are modestly appreciating, just over 2%. In Colorado Springs and El Paso County, detached single-family home prices rose, while condos and townhomes dropped 4 to 7%. Inventory climbed 29%, but buyer demand eased. Boulder is witnessing growth across the board. Inventory is up 30%, and demand is also up 16.4% year over year. In Larimer County, both single-family and condo and townhome prices dipped. Inventory jumped 34.5%, though demand ticked up only 4.5%. In Weld County, single-family prices increased while condo and townhome prices decreased. Inventory rose 23%, and demand surged 19%. Overall, the Front Range has about 3 to 4.5 months of housing supply, and it's feeling like buyer-favorable territory, especially in the lower price ranges. Rising inventory means more choice and more negotiation room for buyers. Sellers should price smart, especially in condo segments right now, which are facing softening prices and insurance hurdles. With mortgage rates stable but elevated, affordability is still a pressing concern. So in summary, the U.S. is showing steady employment, Fed policy remains cautious, mortgage rates are cooling, and Colorado's market is shifting towards balance, with inventory rising and appreciation slowing in key areas. Whether you're buying or selling, staying informed and moving quickly on good homes remains key.