REAL ESTATE INSIDER Vol. 48, No. 1 | FEBRUARY 2024

LOOKING AHEAD: HOUSING DEMAND ON THE UPSWING IN 2024

What lies in store for Northern Colorado real estate in the new year?

With 2023 closing on a high note (thanks to declining interest rates and softening inflation), there are reasons to believe 2024 will see a resurgence in home sales. Here’s a closer look at the factors that will help shape the year ahead.

Economic conditions

Interest rates do not define the economy, but they have much to say about how Americans approach their financial decisions. While we don’t expect home buyers and sellers to immediately shed all caution, the fact that rates are trending down should serve as a light at the end of the tunnel after a challenging period of high rates and high inflation.

Lawrence Yun, chief economist for the National Association of Realtors, expects the rate on 30-year fixed mortgages to trim down close to 6 percent. Consequently, you’ll see more buyers jump back into the market as the year moves on. For Northern Colorado, lower rates should bring an uptick in home sales in the range of 5 percent-8 percent. If interest rates start to decline quickly, look for a corresponding surge in demand, multiple offers from buyers, and a return to rising home prices by the third quarter (July- September).

Still, housing demand could swing up or down depending on the direction of inflation. As the year gets started, signs are positive that inflation is moderating, and the so-called “soft landing” will become a reality.

Family ties

For many first-time homebuyers, their personal buying power depends on family support. In 2023, for instance, 38 percent of first-time buyers received financial help from family members to pull together a downpayment. It’s a trend that is likely to continue as new buyers look for ways to make housing affordable, and families see the importance of helping younger generations get a start on building wealth.

Regional growth

Inflation and high-interest rates have not stopped the Northern Colorado economy from maintaining momentum. Look for continued job growth and development activity, with the addition of both housing and commercial buildings, particularly in the northern and eastern sections of the region. It’s noteworthy that the Colorado State Demographer picks Larimer and Weld counties among the most attractive spots for people moving into Colorado between now and 2030.

OUR STRATEGIC VISION FOR GROWTH CONTINUES TO UNFOLD IN 2024

Since our founding in 1976, the broker-partners of The Group have been committed to setting the standard for professionalism, convenience and service.

With that in mind, The Group has made a series of strategic moves to meet our commitments. In 2021, we opened a new office in Timnath to service the communities that continue to grow east of I-25. Then, in 2022, we acquired Colorado Group Realty, the largest brokerage in Steamboat Springs based on transaction volume. And now in 2024, we are preparing for a new phase of strategic growth.

We developed a mobile agent model that reduced the need for office space, which allows us to consolidate our Fort Collins office space by closing our Horsetooth Road office in Midtown; we will be reinvesting to expand our presence in Weld County and in other growing communities to the east and south of our traditional service area. You can be certain we have not waivered on our commitment to those customers and communities where we have our roots, with two offices in Fort Collins, two in Loveland, one in Timnath, and one in Steamboat Springs. In fact, our strategic vision for growth is reflected in our increasing market share, which is up 5.4 percent in Windsor, 5.5 percent in Fort Collins, and 8.8 percent in Timnath.

The Group is also committed to providing the best in one-stop service for real estate customers, with a family of affiliated businesses that provide mortgage lending, title insurance and closing services, property management, and now property and casualty insurance.

We aim to offer simple solutions to ease the complexity of purchasing or selling a home, and provide our customers with expert guidance from local experts they know and trust.