Year End Report for 2014
2014
Market Overview
While rising home prices continue to make headlines, the fact is homes in Northern Colorado are even more affordable than they were 10 years ago.
Thanks
primarily to falling interest rates, the monthly payment for an average-priced home during 2014 was actually lower in each of our local markets than it was in 2005 The driving force behind this affordability trend is a mortgage interest rate that has hovered close to
Lot development costs, rising material prices, and labor
4 percent over the past year, compared to 6 percent or
shortages caused new home prices to rise significantly.
higher in the mid-2000’s. Combine that lower rate with increasing family incomes, and the cost of ownership comes down.
Job growth was strong in 2014, lowering Colorado’s unemployment rate to 4.1%. Considering that employment is a leading indicator of real estate
The falling interest rates plus rising rents made 2014 the
activity by 12 to 18 months, the 2014 job numbers
best investor market in memory. In addition, Colorado’s
show that the future is bright.
condo defects law limited condo construction causing many potential first time buyers to rent rather than own.
RESIDENTIAL
Statistics
• The average sales price of $273,370 in Northern Colorado was up 8.2% from the previous year.
• The Group, Inc. Real Estate was involved as the listing and/or selling brokerage in 32.6% of all residential transactions in Northern Colorado for 2014.
• The dollar volume of home sales in Northern Colorado for 2014 was $2,771,702,192, an increase of 13.13% from 2013.
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• There were 2,710 new residential units sold in Larimer and Weld counties in 2014.
Homes Sold
$ Volume
2013 2014
Fort Collins/Wellington/Timnath
3,878
3,816
Greeley/Evans
1,944
2,280
$344,461,436
Loveland/Berthoud
2,002
1,977
Windsor/Severence
819
Ault, Eaton, Johnstown, Kersey, LaSalle Mead, Milliken
1,053
Totals
9,691 10,139 $2,449,970,348 $2,771,702,192 $252,808
YEAR END REPORT FOR 2014
2013
Average Price
Area
2014
$1,082,392,812 $1,146,193,050
2013
2014
$279,111
$300,365
$461,049,659
$177,192
$202,215
$517,210,506
$556,336,704
$258,347
$281,405
787
$260,621,098
$273,390,928
$318,219
$347,384
1,279
$245,284,496
$334,731,851 $232,939 $261,714 $273,370
COMMERCIAL
Market
Provided by Sperry Van Ness/The Group Commercial, LLC
On almost all accounts, 2014 clearly was a year of growth for the commercial real estate in our two counties. We track over 7,000 buildings comprising 133 million square feet of property. Comparing 2014’s activity versus the 5 year running average puts the growth (and recovery) of the area in perspective. Demand is simply outstripping supply.
REGIONAL
View
Northern Colorado is known for its quality of life. It is located in the foothills of the majestic Rocky Mountains with outdoor recreation beckoning enthusiasts, vibrant responsibly planned cities, two major universities, world renowned art, a highly educated workforce, superior schools, low crime, 300 days of sunshine and a mild, dry climate that draws visitors and new residents every day. Ongoing national recognition keeps Northern Colorado’s visibility high with a reputation as the “Napa of Craft Breweries” and one of the “epicenters of Clean Energy innovation.” This region has a balanced energy economy and has recently been ranked as having the 3rd fastest growing oil industry in the US. With over 64% of our residents enjoying higher degrees, a business friendly environment and an eco-system that supports innovation, this region continues to grow primary jobs to support a strong economy. Northern Colorado receives top rankings among places to raise kids, retire, receive VACANCY RATES top rated health care, grow your business, attend college and live a healthy lifestyle. Industrial Residents see themselves as ‘citizens of Retail Northern Colorado.’ While they live in one city or town, they work, shop and Office recreate in the entire area. There are so many amenities close by that the region is its own sustainable micro economy. Within a short 45 minute commute, residents can also travel internationally out of Denver’s International Airport and enjoy the larger metropolitan area of Denver. Many prospective home buyers ask to look at more than one community, with each offering something unique. Our commitment is to be the source of information on the region and to help them understand the entire market with our brokers housed within our 6 strategically located offices located throughout Northern Colorado.
Starting with sales volume, almost $850 million of sales in the area contrasted sharply with the $600 million average annual activity over the five years on average. This is a 42% upward difference. Vacancy trends continued to decline, with all commercial properties in aggregate only showing a 4.8% vacancy rate. This contrasts with the historical five year average of 8.5%, (a 44% differential between rates). Prices have rebounded to where the average sale price per square foot is now $120, versus the $88 historical average, (a 36% differential). Likewise, leasing rates are increasing as availabilities are scarce. With the economic rebound and more access to financing, owner-users started building projects. This sign of confidence by the business community was evidenced by the 1.6 million square feet of new construction in progress, more than double the five year average. New projects were started in multifamily, industrial, retail and office properties, in that order of total activity. Absorption of space in the market area was almost 1.5 million square feet, so this new construction activity is not likely to oversupply the market. Fort Collins
Loveland
Greeley, Evans, Windsor
12/13 12/14 12/13 12/14
12/13
12/14
4% 4% 12% 14%
11%
13%
5% 7% 5% 5%
7%
9%
6% 8% 9% 11%
7%
8%
An interesting trend in the area was watching major property holders sell off their assets to realize profits after the long drought in the market. The largest trades in the area were increasingly made to capital equity groups from out of the area. The national demand for higher yield on investment is strongly tilted toward commercial real estate investments. Our local developers and owners have ready buyers if they have investment grade properties. While the energy industry activity is in a “watchful waiting” period at this writing due to dropping oil prices, it is not the only industry that contributes to our regional economy. Combined with the uptick of owner-user demand, we can expect the commercial real estate trend lines to continue in Larimer and Weld counties next year. www.thegroupinc.com
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RESIDENTIAL
Sales History
Average Year # of Homes % Change Dollar Value % Change Sales Price
4
% Change
Fort Collins Wellington Timnath
2005 4,008 -2% $983,941,789 +4% $245,494 +6% 2006 3,701 -8% $920,687,503 -6% $248,767 +1% 2007 3,613 -2% $916,175,623 -0.5% $253,578 +2% 2008 3,121 -14% $783,626,770 -14% $251,081 -1% 2009 2,923 -3% $699,252,210 -11% $239,223 -5% 2010 2,783 -5% $696,823,184 -2% $250,386 +5% 2011 2,736 -2% $693,885,165 0% $253,613 +1% 2012 3,374 +23% $879,448,133 +27% $260,654 +3% 2013 3,878 +15% $1,082,392,812 +23% $279,111 +7% 2014 3,816 -2% $1,146,193,050 +6% $300,365 +8%
Loveland Berthoud
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Greeley Evans
2005 2,225 2006 1,857 2007 1,704 2008 1,662 2009 1,671 2010 1,532 2011 1,465 2012 1,493 2013 1,944 2014 2,280
+0.5% $407,305,044 +4% -16% $324,713,094 -20% -8% $281,539,881 -13% -3% $250,523,236 -11% +0.5% $232,955,393 -7% -8% $218,002,039 -6% -4% $208,237,058 -4% +2% $241,807,019 +16% +30% $344,461,436 +42% +17% $461,049,659 +34%
$183,058 +3% $174,859 -5% $165,223 -6% $150,735 -9% $139,411 -8% $142,299 +2% $142,141 0% $161,960 +14% $177,192 +9% $202,215 +14%
Windsor Severence
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
+27% $219,181,664 +66% 0% $223,702,916 +2% -6% $219,222,307 -2% -28% $149,071,110 -33% +0.5% $141,649,327 -5% +1% $150,282,988 +6% +11% $161,958,496 +8% +31% $218,991,979 +35% +13% $260,621,098 +19% -4% $273,390,928 +5%
$310,896 +31% $319,120 +3% $332,155 +4% $311,864 -7% $286,160 -8% $299,966 +5% $290,769 -3% $300,813 +3% $318,219 +6% $347,384 +9%
Ault Eaton Johnstown Kersey Milliken Mead LaSalle
2005 795 2006 707 2007 662 2008 652 2009 532 2010 535 2011 698 2012 896 2013 1,053 2014 1,279
-8% -11% -6% -2% -19% +1% +30% +28% +18% +21%
$216,733 +3% $224,918 +4% $216,809 -4% $199,711 -8% $188,152 -6% $196,112 +4% $192,838 -2% $208,888 +8% $232,939 +12% $261,714 +12%
2,048 1,709 1,535 1,386 1,335 1,363 1,381 1,681 2,002 1,977
705 701 660 478 495 501 557 728 819 787
YEAR END REPORT FOR 2014
-1% -17% -10% -10% -4% +2% +1% +22% +19% -1%
$509,190,492 +3% $439,562,980 -14% $376,943,056 -14% $333,496,631 -12% $301,738,889 -10% $315,371,969 +5% $322,535,668 +2% $412,216,976 +28% $517,210,506 +25% $556,076,804 +8%
$172,302,909 -4% $159,017,056 -8% $143,527,537 -10% $130,212,087 -10% $100,097,095 -23% $104,919,874 +5% $134,601,026 +28% $187,164,073 +39% $245,284,496 +31% $334,731,851 +36%
$248,628 $257,204 $245,565 $240,610 $226,021 $231,381 $233,552 $245,221 $258,347 $281,405
+4% +3% -5% -2% -6% +2% +1% +5% +5% +9%
Source: MLS, Residential and attached homes only.
RESIDENTIAL
Inventory
BUILDING PERMIT
6661 6359
4008 3701 3613
’06
’07
5062
4404 4434
3698
’09
’10
’11
735
4176 4528 4419
3374 3121 2923 2783 2736
’08
Single-Family
458
’12
’13
264
’05
‘14
’06
2960
’05
’08
4846
4338
’09
’10
’11
’12
3262 3506
2910 3095
2540 2341 2294 2389 1987 2067 2163 ’06
’07
’08
’09
’10
’13
’14
235
’11
’12
445 281
’13
145
’14
’05
Greeley/Evans
Greeley Area*
5593 5359
’07
’08
140 171
754
2271 2565 2132 2442 2582 2347 2142 1820 1977 1604 1467 1399 1376 1443 1795 2121 ’06
565
Single-Family
3656 3424 3024 2663
’05
’07
555 440
408
3878 3816
Loveland
’05
Loveland/Berthoud
5662
Homes Sold Fort Collins
Fort Collins/Timnath/Wellington
Homes Listed
Activity
’09
’10
’11
’12
’07
’08
’09
’10
’11
233
’12
’13
724
367 179
’14
’14
Single-Family
3689 4153 3559 2997
‘13
’06
68
125 152
361
243
’05
’06
’07
292 65
45
80
’08
’09
’10
35
55
’11
’12
155 ’13
’14
Windsor/Severance
Windsor/Severance
*Greeley, Evans, Ault, Eaton, Johnstown, Kersey, LaSalle, Mead, Milliken
1378 1485 1233 1141 915 930 869 705 701 660 478 495 501 557 ’05
’06
’07
’08
’09
’10
’11
Includes all listing types, except mobile/manufactured. Source: MLS, Residential and attached homes only.
Single-Family
451 331 224
981 1068 997 728 819 787 ’12
’13
’14
437
’05
’06
’07
119
96
’08
’09
134 ’10
356
244
’11
241
’12
’13
’14
www.thegroupinc.com
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Our Commitment
to Innovation
In 2014 The Group opened its 6th location in Downtown Fort Collins at 121 E. Mountain Avenue, right across the street from Old Town Square. Branded as THE SOURCE, the front of this non-traditional space is dedicated to helping visitors learn where to LIVE, where to GO, and what to DO in Northern Colorado. A friendly and knowledgeable ambassador, aided by technology and other resources, is available to greet people and answer questions about the community. Group Realtors provide information about the real estate market, neighborhoods and homes for sale.
Our Commitment
The centerpiece of THE SOURCE is the Liquid Galaxy™, a bank of large screens giving viewers a bird’s eye view of Northern Colorado via Google Earth™. This technology was made possible by a partnership with Colorado State University Libraries. Guests can ‘fly’ anywhere in the world, but the Liquid Galaxy is especially helpful in showing newcomers to Northern Colorado the amazing amenities our area has to offer from ski areas to bike trails, parks and schools. Stop in at THE SOURCE any time to see a new way to do real estate!
to the Community
Group Partners ranked 2nd for total giving to United Way of Larimer County. This year’s total contribution exceeded $234,000. The Group was a major sponsor of Downtown Fort Collins, Sculpture in the Park in Loveland, Neighbor 2 Neighbor Polo Event, Northern Colorado Economic Development Council, Everitt Real Estate Center, Museum of Discovery, Colorado State University Athletic Department, United Way Cornerstone Program, and Respite Care. Christmas on Wheels, an annual project funded primarily by Group Partners, gave over 20 new bicycles to children of clients of Project Self Sufficiency. The Group Real Estate Scholarship was awarded to Alyxandra Van Doren, Fossil Ridge High School. This full-tuition scholarship is awarded each year to a graduating senior of a Northern Colorado high school who will be attending the College of Business at Colorado State University.
Our Commitment
• Project Self-Sufficiency • Meals on Wheels for Fort Collins • Alternatives to Violence • Crossroads Safehouse • Habitat for Humanity, Berthoud • Be The Gift, Inc. • Serve 6.8 • RamStrength • Habitat for Humanity, Greeley • Loveland housing Authority • Loveland High School Geometry in Construction • Loveland Village Good Samaritan Society Group Scholar ALYXANDRA VAN DOREN Fossil Ridge High School
to Customer Service
Our mission since 1976 has been to ‘help people get where they want to go on time – make it easier, make it faster, be their source of real estate knowledge.’ The Group’s family of companies, critical in the real estate purchase process, helps us bring unmatched convenience to our customers who choose to use our affiliated businesses. By partnering with industry leaders – Cornerstone Home Lending, Inc. and Stewart Title
GROUPMortgage, LLC
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GroupGives, a donor advised fund at the Community Foundation of Northern Colorado gave over $30,000 to the following organizations:
YEAR END REPORT FOR 2014
– The Group brings a high level of accountability to the real estate transaction. Sperry Van Ness The Group Commercial shares the same philosophy of local ownership with The Group. SVN provides expanded resources, tools, and a national network for our commercial customers to tap in to.
Coun
County Road 90
Terry Lake
County Road 90
Pierce
County Road 19
County Road 56
25
County Road 29
Larimer County Weld County
!1 County Road 56
County Road 43
85
TAFT AVE
WILSON AVE
7
d2
Roa
Fort Collins Loveland Airport
County Road 13
nty
Cou
Horseshoe Lake
Windsor
CROSSROADS BLVD
Boyd Lake un Co
34
ty
Lake Loveland
ad Ro
EISENHOWER BLVD
MAIN ST
85
!
392
392
County Road 43
287
Windsor Lake
Poudre River Ranch Natural Area
257
Greeley
34
263
10TH ST
20TH ST
29
11TH AVE
27
392
Severance
County Road 74
35TH AVE
LEMAY AVE
County Road 38E
d Roa
Fossil Creek Reservoir
Eaton
County Road 74
County Road 37
25
County Road 32
Loveland
!
257
County Road 13
nty Cou
Fossil Creek Park TRILBY RD
Windsor Reservoir
County Road 38
59TH AVE
!
Timnath
68
71ST AVE
Warren Lake
HARMONY RD
!14
Timnath Reservoir
County Road 23
HORSETOOTH RD
TIMBERLINE RD
COLLEGE AVE
SHIELDS ST
oir
TAFTHILL RD
Reserv
Fort Collins
County Road 5
DRAKE RD
Horsetooth Mountain Park
Ault
14 County Road 33
PROSPECT ST
MULBERRY ST
County Road 17
City Park
thooth Horse
Lory State Park
County Road 5
Lee Martinez Park
34
34
County Road 20
257
Boedecker Reservior
14TH ST
Evans
County Road 54
County Road 18
402
County Road 54
County Road 21
60
County Road 14
Johnstown
394
Milliken
County Road 42
LaSalle
County Road 50
County Road 48
85
County Road 21
County Road 17
County Road 44
256 60
Gilcrest County Roa
County Road 13
25
County Road 11
County Road 7
County Road 4
!56 County Road 904
County Road 21
287
ad Ro
60
Berthoud
!56
unty Co
287
County Road 10
County Road 8E
County Road 50
County Road 43
County Road 23
d 31 County Roa
Carter Lake
County Road 17
Larimer County Weld County
County Road 7
County Road 16
Cheyenne
50 Mile Radius
The Group, Inc.
Office Locations
Fort Collins Loveland Longmont
Harmony Office 2803 E. Harmony Road Fort Collins, CO 80528 (970) 229-0700
Centerra Office 5401 Stone Creek Circle Loveland, CO 80538 (970) 613-0700
Boulder
Denver Horsetooth Office 375 E. Horsetooth Road Fort Collins, CO 80525 (970) 223-0700
Loveland Office 1401 W. 29th Street Loveland, CO 80537 (970) 663-0700
Mulberry Office 401 W. Mulberry Street Fort Collins, CO 80521 (970) 221-0700
THE SOURCE in Old Town 121 E. Mountain Avenue Fort Collins, CO 80524 (970) 493-0700
Greeley
DIA
www.thegroupinc.com
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