2024: THE YEAR IN REAL ESTATE
2024 presented some curveballs, but we also witnessed new opportunities for residential real estate in the Northern Colorado Region. Our region once again proved it has an incredibly resilient housing market. Our regional market saw home sales increase year over year by 3.3% and the median price of single family homes for all areas combined grew by 3% annually.
Mortgage Rate Rollercoaster
The 2024 housing market experienced a rollercoaster of mortgage rates, bookended by 7% rates early in the year and again in the late fourth quarter. Rates averaged 6.7% throughout the year, with a peak of 7.22% in May and a brief dip to 6.08% in September. These fluctuations kept many homeowners “rate locked,” reluctant to part with the low-interest mortgages they secured in prior years, and many buyers sidelined as a result.
However, many first-time and repeat buyers found opportunity in the heightened rate environment to take advantage of new construction rate incentives, obtaining a much more favorable interest rate from builders, making their transaction possible in 2024.
Affordability Challenges Confront Additional Hurdles
With record home prices and continuing constraints on inventory, home affordability continued to pose a challenge in 2024. But it wasn’t just mortgage rates that created the challenge; increasing property taxes along with growing property insurance premiums created additional hurdles. In an effort to address growing affordability concerns and increase the supply of housing, state government and local municipalities have worked to redefine land-use and zoning laws.
It is important to recognize that while our affordability challenges are present, it does not impact the entirety of the market. One-third of home owners nationally in the U.S. own their property free and clear. As a result, we have seen the number of all-cash purchases increasing, both regionally and nationally. Nationally, 30% of transactions in 2024 were all-cash, and the majority of our regional markets experienced their highest percentage of all-cash transactions on record.
Transitional Market
By definition the market still remains a “Seller’s Market,” however, the tables have turned to be more favorable to buyers in 2024. Buyers are able to capitalize on seller incentives, builder incentives, and less competition compared to prior years. As demographics change and the median age of communities gets older, we see a growing pent-up demand for area housing. This demand has kept the housing market stable during a more challenging market.
Development Surges Ahead
The I-25 project continues with the expansion of the express lanes between Berthoud (Highway 56) and Mead (Highway 66), which are slated to be complete by 2028. This improvement to I-25 has brought a great deal of growth to the region in both commercial and residential real estate, concentrated between the Highway 34 and Highway 56 interchanges. While you may not see the rooftops yet, several Master Planned developments will reshape the areas into the future.
Looking Ahead: Northern Colorado’s Resilient Real Estate Market in 2025
As we embark on 2025, Northern Colorado’s real estate market remains a model of strength and adaptability. Despite challenges (such as elevated mortgage rates), the region’s unique resilience, coupled with encouraging trends in employment and development, points to another promising year ahead.
Modest Growth on the Horizon
Home sales in Northern Colorado are expected to grow by 5%, reflecting sustained demand and the region’s enduring appeal. Median home prices across the region are projected to rise by 4%, signaling steady and healthy growth in our local housing market.
Employment Strength Leads the Way
A significant factor bolstering Northern Colorado’s resilient housing market is the employment growth in Larimer and Weld counties. These counties have outperformed the overall state in job creation and economic vitality, a trend that is expected to continue over the next 12 months. This strength in the job market provides stability and confidence for homebuyers and developers alike.
Mortgage Rate Relief in Sight
Mortgage rates, which have hovered between 6.5% and 7%, are expected to ease slightly as we approach the prime selling months of summer and early fall. With forecasts suggesting rates will dip into the 6% to 6.5% range, buyers could see increased purchasing power, bringing much-needed relief to the market.
Creative Solutions and Multi-Generational Living
As affordability challenges persist, creativity is playing a key role in buyer behavior. Builder and seller incentives continue to attract buyers, while the rise of multi-generational households – which accounted for 17% of purchases nationally in 2024 – offers another innovative solution. Families pooling resources to secure homes is an inspiring testament to adaptability in the face of economic pressures.
Development Along the I-25 Corridor
Northern Colorado’s growth is increasingly visible along the I-25 corridor, particularly from Johnstown south to Berthoud and east to Greeley. New master-planned developments are reshaping the landscape, adding residential and commercial opportunities that will define the region for years to come.
A Year of Optimism and Opportunity
With steady employment growth, modest price increases, and a gradually improving mortgage rate environment, Northern Colorado is well-positioned for a year of resilience and opportunity. The region’s ability to adapt, innovate, and thrive continues to set it apart, making it a dynamic and desirable place to call home.
SOARING INTO 2025: OUR VISION FOR GROWTH
Since our founding in 1976, The Group has proudly set the benchmark for professionalism, innovation, and locally focused real estate expertise in Northern Colorado. As we turn the page to 2025, our commitment to providing world-class service from a locally owned and operated brokerage remains steadfast – and our vision for strategic growth continues to thrive.
Over the past several years, we’ve made bold moves to expand our footprint while staying rooted in the communities we know and love. In 2021, we opened our Timnath office to meet the needs of the vibrant neighborhoods east of I-25. In 2022, we extended our reach west into the Yampa Valley by acquiring Colorado Group Realty in Steamboat Springs. In 2024 we took the next step forward, solidifying our presence in Weld County by opening office space to serve the rapidly growing areas of Windsor and Greeley.
Expanding into Weld County: A Thriving Market
This year, we’re thrilled to announce the purchase of our new office in Greeley. Weld County – one of the fastest-growing regions in Colorado – presents an incredible opportunity to deepen our impact and better serve Northern Colorado. This expansion reflects our dedication to meeting the evolving needs of homeowners and buyers in these dynamic markets.
Local Service, National Standards
As we grow, our commitment to simplicity, service, and trust remains at the core of what we do. Whether you’re buying your first home, upgrading for a growing family, or seeking investment opportunities, we offer streamlined solutions and unparalleled guidance through every step of the process.
Our family of affiliated businesses — including mortgage lending, title insurance, property management, and property and casualty insurance — ensures that The Group continues to be a convenient, one-stop resource for all things real estate.
What’s Ahead for 2025
While our expansion into Weld County is a highlight of our growth strategy, we are equally focused on staying deeply connected to our traditional service areas. With offices in Fort Collins, Loveland, Timnath, Windsor, and Steamboat Springs, we are proud to balance growth with strong ties to our local communities.
In 2025, we will continue to innovate, invest in our people, and reinforce our position as Northern Colorado’s trusted real estate leader. By embracing opportunity and focusing on our mission, we aim to set the stage for success — for our team, our clients, and the communities we serve. The Group is excited about what lies ahead and looks forward to helping you achieve your real estate goals in the year to come. Here’s to 2025 — a year of growth, opportunity, and connection!
Group Partner Design Trend Predictions 2025
Inside
- More vibrant color, less beige, gray, or white
- Personal spaces and home offices
- Smart home technology
- Additions for aging in place, such as elevators
- Embrace natural light and bring nature inside
Outside
- Investment in outdoor living, i.e., kitchens
- More attention to yards and gardens
- Bigger garages with higher clearance
- Declutter and organize garages
- Attached dwelling units or mother-in-law apartments