December 2024 | Market Update

The New Year has come and it’s an exciting time of the year in Real Estate: it’s the time we can look at at the previous year in its sum and take stock of where we stand and where the market might turn in the coming year, much like many of us do with our personal and professional lives. Here’s the trends to pay attention to: Home Prices Rise in Last 12 Months: Although buyer demand has been at a low point across the nation this past year, low inventory have kept appreciation in the region within normal ranges hovering around 5%. Standout markets: Evergreen saw an 11% increase YoY for the previous 12 months of sales versus the 12 months before, Louisville was up 7% and Windsor was up 5%. Months of Supply Unchanged: Classically measured in balanced (6 months of inventory) vs unbalanced (anything above or below 6 months of inventory), inventory across the region has stayed very low despite some signs of rising inventory which shows us additional inventory is being absorbed by buyer demand. Bright spots: Fort Collins dropped 11% to 1.7 months of inventory, Berthoud is down 6% and Timnath is down 3%. Bucking the trend, Boulder is up 24% in December 2024. Number of Homes Sold Down for Year, up for Month: Limited inventory combined with higher than previous interest rates have created one of the lowest sales rates across the nation in several decades, trading at a rate of 25 per 1,000 households which is the lowest rate since 1990. December showed an increase in homes sold, however, for Northern Colorado vs last year, which may be an indicator of an improving market in Northern Colorado in 2025. HIghlights: Denver Metro was up 17%, Fort Collins up 39%, Longmont up 9% and Boulder up a whopping 52%. Luxury Increases: Looking into the Luxury market (homes in the top 5% in sales price), the market showed strength this past year across most markets with increases in average sales prices, reduction in inventory (creating scarcity in the market) and increases in the number of homes sold. What stood out? Timnath has less than one month of inventory on the market above $1.5M, which is extraordinarily low giving sellers thinking of selling an opportunity to take advantage of the market. The average luxury sales price in Estes Park increased in 204 by 11% to $2,350,000. The number of luxury sales in December 2024 in Larimer County increased by 50% to 36 homes sold, year over year. Low Inventory, Pent Up Demand and Interest Rate Unknowns: In total, 2024 in Northern Colorado’s real estate market fared better than most. Months of supply across the nation was hovering around 8, while Northern Colorado is averaging 2, which has caused prices to maintain or increase in most regional cities. Looking into 2025, we’ll be watching likely trends of lower inventory  as compared to previous years. We’re also watching to see if several years of pent up demand related to the pandemic and higher interest rates from younger generations begins to open up, causing sales activity to increase. The one unknown variable: will mortgage interest rates stay steady, or fall? For help assessing your home or real estate investment portfolio, reach out to the trusted experts at MCM Collective. 

Residential Real Estate: Key Metrics Across Cities

The residential real estate market in Northern Colorado has shown substantial year-over-year (YoY) changes in sold listings, signaling strong demand:

• Fort Collins: Sold listings increased by 39%, highlighting robust buyer activity. The city recorded 199 homes sold in December 2024 compared to 143 in December 2023, while inventory levels remained steady, maintaining a balanced market.
  
  

• Boulder: A 52% rise in sold listings reflects sustained interest driven by economic growth and proximity to major employers, with 123 homes sold in December 2024 compared to 81 in the previous year.
  
  

• Timnath: This market saw a 43% increase in sold listings, with transactions rising from 23 in December 2023 to 33 in December 2024. New developments and competitive pricing continue to drive this growth.
  
  

• Windsor: An 87% YoY surge in sales underscores its growing appeal, with sold listings jumping from 39 to 73 in the same period.
  
  

At the county level:

• Larimer County: Sold listings rose by 29%, with 449 homes sold in December 2024 compared to 348 the previous year, indicating a resilient market with diverse housing options.
  
  

• Weld County: A 15% YoY increase highlights its affordability compared to Boulder and Larimer, making it attractive for first-time buyers and investors, with sales growing from 354 to 406.
  
  

Luxury Market Performance: A Data-Centric Perspective

The luxury segment of Northern Colorado real estate reflects distinct trends that cater to high-net-worth individuals seeking investment-grade properties:

• Boulder: Luxury sales rose by 25%, with notable activity in neighborhoods like Newlands and Mapleton Hill, emphasizing unique architectural and design elements.
  
  

• Fort Collins: Although new luxury listings decreased by 33% (from 12 in December 2023 to 8 in December 2024), turnover within the existing inventory increased, signaling constrained supply amid high demand.
  
  

In Larimer and Boulder Counties, luxury properties have increasingly emphasized energy efficiency and custom design. For example, Fort Collins saw 8 new luxury listings, compared to Boulder’s 3, reflecting differing inventory dynamics.

Comparative Analysis: Northern Colorado vs. National Trends

Nationally, real estate markets have faced challenges from rising interest rates and limited inventory. Northern Colorado mirrors these issues but maintains relative affordability and investment potential:

• Affordability: Compared to national luxury markets like San Francisco or New York, Northern Colorado offers competitive pricing, particularly in emerging areas like Windsor and Timnath.
  
  

• Inventory Constraints: While inventory remains tight, Weld County’s 69% increase in new listings from 13 to 22 in December 2024 demonstrates proactive market adjustments.
  
  

• Investor Appeal: Northern Colorado’s steady appreciation rates and lower volatility make it an attractive alternative to pricier coastal markets.
  
  

Investment Value: What the Data Reveals

Real estate in Northern Colorado offers significant opportunities for wealth building and legacy planning:

• Return on Investment (ROI): Cities like Boulder and Fort Collins exhibit strong historical appreciation, with annual increases exceeding the national average. Boulder saw a 52% increase in sales, while Fort Collins recorded a 39% rise.
  
  

• Diversification: Properties in Larimer and Weld Counties provide options for diversification within residential and luxury segments. Weld County’s rise in new listings and sales demonstrates its evolving market dynamics.
  
  

• Migration Patterns: A continued influx of professionals from high-cost regions supports long-term market stability and price appreciation. This is particularly evident in growth areas like Timnath and Windsor.
  
  

Projections for 2025 and Beyond

Looking ahead, Northern Colorado’s real estate market is positioned for moderate yet stable growth. Factors such as infrastructure investments, population growth, and a focus on sustainable development are expected to bolster the region's appeal.

Investors and homeowners should focus on:

• Emerging Markets: Areas like Windsor and Timnath offer lower entry points with high growth potential. Windsor’s 87% YoY sales increase highlights its momentum.
  
  

• Sustainability Trends: Properties with energy-efficient features will likely command premium pricing.
  
  

• Legacy Opportunities: For families and individuals, the region provides options to build long-term wealth while enjoying a high quality of life.
  
  

Northern Colorado continues to evolve as a dynamic real estate market, offering value through data-driven investment strategies and diverse opportunities across both residential and luxury segments.