The Group Real Estate's Annual Report for 2014

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.

2

• 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

3

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

5

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

6

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

7