YEAR-END REPORT
Mountains. Blue Sky. Sunshine. An abundance of opportunities for education, culture, and recreation. We live in a region that holds great promise with a quality of life that appeals to people who are active, intelligent, and innovative. We are attracting new talent to our company, people who reflect the youthfulness and bright future of our communities. We are leading the way by incorporating the latest industry technology while understanding that our relationships with each other and our customers are still the most important thing. When you work with a Group Realtor®, you are working with the owner of the company. It is one of the things that makes us different. The concept of equal ownership is not new for us — we started that way over 40 years ago — and it has allowed us to build a culture of excellence and cooperation. We believe that working together and sharing information is the best way to get the job done. Our full-time professional Realtors® are experts in our real estate market and our area. And our entire team strives to create a smooth and worry-free transaction for our customers. We have designed our company for our customers — we are the only real estate company in Northern Colorado that offers in-house mortgage services, a title company, a relocation department to assist both corporate and individual moves, a property management company, and dedicated staff to make sure details of every transaction from listing to closing are taken care of. The Group is ranked among the top 125 companies in the country for number of transactions each year and has been the top producing company in Northern Colorado since 1976…but what really matters is this: we know how to get the job done to help our customers get where they need to be on time.
2018 Board of Directors
Doug Miller Chairman of the Board
Brandon Wells President The Group, Inc.
Troy Hiebsch President Group Financial Partners
Kathy Arents
Craig C. Hau
Sarah Hay-Arthur
Diana Luthi
Deanna McCrery
Christopher Reilly
Our Board of Directors is made up of Group Partners. They are elected by their peers to serve a two-year term. These people bring their business acumen and their vast experience and knowledge of the real estate business to guide the direction of The Group.
2017 Market Overview Northern Colorado’s housing market in 2017 generated a variety of noteworthy trends. Stitch them all together, and we wind up with a colorful patchwork quilt of sometimes contrasting images for the year in real estate. We see how average sale prices continued to climb, but not quite at the same pace as recent years — and even sluggishly for high-end homes. We see an ongoing shortage of housing supply, and statistically flat growth in overall sales, but signs of a long-awaited resurgence in new home construction. And we see Northern Colorado’s smallest towns making the largest impact in the region’s housing growth.
Fort Collins and Greeley markets were among the two most profitable places for sellers in 2017.
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YEAR-END REPORT FOR 2017
After a run of double-digit increases, growth in average prices slipped below 10 percent last year. Total sales across the region were up 2 percent, as inventory — the number of homes listed for sale — nudged slightly higher after a decline in 2016. Much of that 2017 sales growth can be attributed to what transpired in Berthoud — where sales jumped an astounding 107 percent. Looking at it another way, total sales for the region increased by 249 last year. Berthoud sales increased by 233. Berthoud was also among the hottest markets for homebuilders, who found new momentum last year. For the 12-month period ending June 30, 2017, builders started 4,644 new homes in Larimer and Weld counties — the most for a 12-month stretch since late in 2006. By comparison, the recession saw annual housing starts fall to 971 in 2009. With all these different facets of the market to consider, we also see one of the most stable and desirable real estate markets in the country. In fact, a report by Realtor.com released in the spring of 2017 ranked the Fort Collins-Loveland area No. 1 on its list of the most stable, growing markets in the country. Which makes it no coincidence that the Fort Collins and Greeley markets were among the two most profitable places for sellers in 2017, according to ATTOM Data Solutions.
Realtor.com ranked the Fort Collins-Loveland area No. 1 on its list of the most stable, growing markets in the country.
Regional View In Northern Colorado, growth, change and opportunities seem nearly as certain as the mountains that dominate the landscape. We only need to take a quick look around to see how our communities are rapidly adding residents and houses. Less obvious is the growth in the local workforce. Looking at the latest employment statistics, we can see that the combination of Larimer and Weld counties is proving to be an economic engine for the entire state. According to the Colorado Department of Labor, the two counties added 21,377 jobs between July 2016 and July 2017, or nearly half of all jobs created in Colorado during that period.
Nationally and statewide, Northern Colorado’s reputation for quality of life and business opportunities continues to build too. SmartAsset calls Fort Collins as the third-best place to buy a house, and ranks Weld County No. 1 in the state for incoming business investment. Fort Collins ranks No. 11 and Greeley No. 15 for community happiness on the Gallup-Healthways Well-being Index. And financial website WalletHub picks Greeley No. 12 nationally for best cities for firsttime homebuyers. SHADED AREAS REPRESENT A MUNICIPALITIES ANNEXED GROWTH AREA
Meanwhile, the region’s four public colleges — Aims Community College, Colorado State University, Front Range Community College and the University of Northern Colorado — are proving to be the power for the engine. Results of a recent study show four schools are generating $2.4 billion in local income and 39,677 jobs for the region. Their impact can also be measured in bricks in mortar, including CSU’s new $220 million on-campus football facility that opened last fall, and UNC’s $73.6 million Campus Commons project — due to launch this summer. With growth has come more traffic on Interstate 25 in Northern Colorado. And state officials will begin to deal with the congestion this year, kicking off a threeyear, $248 million project to add express lanes in both directions between Johnstown and Fort Collins. Fort Collins Loveland Windsor
Timnath
Wellington LaPorte
Source: City of Fort Collins, Planning Services
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We witnessed a long-awaited resurgence in new home construction, and evidence of job growth that will likely keep driving demand for the foreseeable future.
+9.16% AVERAGE SALES PRICE IN NORTHERN COLORADO FROM 2016 TO 2017
+11.81% INCREASE IN DOLLAR VOLUME OF HOME SALES FROM 2016 TO 2017
Residential Statistics Residential home prices increased in 2017, but affordability means much more than price. Because of low interest rates and rising average income, our area is actually more affordable now than it was in years past. Northern Colorado remains relatively affordable and has a strong economy. • The average sales price of $366,632 in Northern Colorado was up 9.16% from the previous year. • The dollar volume of home sales in Northern Colorado for 2017 was $3,848,171,139, an increase of 11.81% from 2016.
28.08% THE GROUP INC. WAS INVOLVED IN RESIDENTIAL TRANSACTIONS IN NORTHERN COLORADO
• Homes sold throughout Northern Colorado totalled 10,496 in 2017 compared to 10,247 in 2016.
AREA
2016 2017
Fort Collins, Wellington, Timnath
3,661
3,826
Loveland, Berthoud
2,050
2,275
$720,546,555
Greeley, Evans
2,480
2,162
Windsor, Severence
1,021
1,007
Ault, Eaton, Johnstown, Kersey, LaSalle, Mead, Milliken
1,035 1,226 $327,055,340
Totals
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• The Group, Inc. Real Estate was involved as the listing and/or selling brokerage in 28.08% of all residential transactions in Northern Colorado for 2017.
YEAR-END REPORT FOR 2017
Homes Sold
$ Volume 2016
Average Price 2017
$1,368,126,689 $1,519,178,696
2016
2017
$373,703
$397,067
$866,955,606
$351,486
$381,079
$627,355,272
$600,752,248
$252,966
$277,869
$398,487,589
$437,281,979
$390,291
$434,242
$424,002,610 $315,995 $345,842
10,247 10,496 $3,441,571,445 $3,848,171,139
$335,861
$366,632
Commercial Market Northern Colorado’s four commercial market sectors — retail, industrial, office and land — experienced different outcomes through the first three quarters in 2017 when compared to 2016. Retail sales led all categories with $163 million, down from $174 million in 2016. Retail properties also had the lowest vacancy rate in both 2016 and 2017 at 5.4%. Particularly due to big box store bankruptcies — and generally due to the “Amazon Effect” — look for an overall trend of a slightly increasing retail vacancy rate. Industrial recorded $89 million in sales, up from $81 million in 2016. This is most likely explained because the average sold price per square foot reached $153 in 2017, which was a dramatic increase from $113 per square foot in 2016. The industrial vacancy rate at the end of 2017 registered at 6.2%, down from 6.79% last year. Also, pay attention to the price of oil at $63 dollars a barrel. In December, West Texas Intermediate (WTI) Crude Oil broke $60/barrel for the first time in more than two and a half years. WTI should reactivate the region’s oil
patch this year, which will exacerbate the already low vacancy rate. In 2017, land sales were $130 million. But in 2016, land sales led all market segments with $177 million. These high sales numbers for land give clear insight into the region’s low inventory. Tenants often can’t find appropriate space, if any at all, so they are forced into purchasing. Many owners need an upgraded building, typically due to outdated functionality or the desire for greater size. Therefore, both tenants and owners have purchased land with the intention of constructing their own buildings. The office category came in last with $67 million in gross sales, down from $107 million in 2016. The vacancy rate at the end of 2017 was 9.9%, down from 14% in 2016. Despite the lower vacancy rate, we anticipate that office sales and leasing will continue to be slow, principally because demand has been satisfied due to recently signed leases.
VACANCY RATES
Fort Collins Loveland Greeley Longmont Area Area Area Area 12/16 11/17 12/16 11/17 12/16 11/17 12/16 11/17
Industrial
3.8% 2.8% 11.6% 13.0% 3.8% 4.4% 8.0% 2.6%
Retail
4.8% 5.0% 4.0% 2.9% 4.9% 4.5% 7.4% 5.0%
Office
4.8% 3.0% 6.0% 8.4% 3.6% 3.6% 7.5% 8.0% Source: SVN / Denver Commercial®
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Residential Sales 5-Year History Average Area Year # of Homes % Change Dollar Value % Change Sales Price
% Change
Collins, Fort Wellington, Timnath
2013 2014 2015 2016 2017
3,878 +15% $1,082,392,812 +23% $279,111 +7% 3,816 -2% $1,146,193,050 +6% $300,365 +8% 3,721 -2% $1,264,256,756 +10% $339,763 +13% 3,661 -2% $1,368,126,689 +8% $373,703 +10% 3,826 +5% $1,519,178,696 +11% $397,067 +6%
Loveland, Berthoud
2013 2014 2015 2016 2017
2,002 +19% 1,977 -1% 2,100 +6% 2,050 -2% 2,275 +11%
$517,210,506 +25% $258,347 +5% $556,336,704 +8% $281,405 +9% $665,133,740 +20% $316,730 +13% $720,546,555 +8% $351,486 +11% $866,955,606 +20% $381,079 +8%
Greeley, Evans
2013 2014 2015 2016 2017
1,944 +30% 2,280 +17% 2,450 +7% 2,480 +1% 2,162 -13%
$344,461,436 +42% $461,049,659 +34% $550,163,302 +19% $627,355,272 +14% $600,752,248 -4%
Windsor, Severence
2013 819 +13% 2014 787 -4% 2015 824 +5% 2016 1,021 +24% 2017 1,007 -1%
$260,621,098 +19% $273,390,928 +5% $311,164,717 +14% $398,487,589 +28% $437,281,979 +10%
$318,219 +6% $347,384 +9% $377,627 +9% $390,291 +3% $434,242 +11%
Ault, Eaton, Johnstown, Kersey, Milliken, Mead, LaSalle
2013 1,053 +18% 2014 1,279 +21% 2015 1,134 -11% 2016 1,035 -9% 2017 1,226 +18%
$245,284,496 +31% $334,731,851 +36% $330,482,439 -1% $327,055,340 -1% $424,002,610 +30%
$232,939 +12% $261,714 +12% $291,431 +11% $315,995 +8% $345,842 +9%
$177,192 +9% $202,215 +14% $224,556 +11% $252,966 +13% $277,869 +10%
Source: MLS, residential and attached homes only.
In-Depth View The Wellington and Berthoud markets have changed considerably in the last couple of years. In the past, we have included them with Fort Collins and Loveland. Below, you will see the date broken out for these communities to present an in-depth view of our different areas. Area
Year
# of Homes
% Change
Dollar Value
Average % Change Sales Price
% Change
Fort Collins, Timnath
2016 3,180 2017 3,327
Loveland
2016 1,832 2017 1,824
Berthoud
2016 2017
218 -18% 451 +107%
Wellington
2016 2017
481 +23% $147,594,409 +36% $306,849 +10% 499 +4% $158,136,431 +7% $316,907 +3%
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YEAR-END REPORT FOR 2017
-5% $1,220,532,280 +5% $383,815 +11% +5% $1,361,042,265 +12% $409,090 +7% 0% $630,681,486 +12% $344,258 +12% 0% $686,216,708 +9% $376,215 +9% $89,865,069 -12% $180,738,898 +101%
$412,225 +8% $400,751 -3%
Residential Inventory 5-Year History
Building Permit 5-Year History Single-Family (Attached and Detached)
FORT COLLINS WELLINGTON / TIMNATH 4528 3878
4419 3816
4431 3721
4223 3661
FORT COLLINS
4625 3826
565
509
522
555
’13 ’14 ’15 ’16 ’17
Homes Listed
583
’13 ’14 ’15 ’16 ’17
Homes Sold
LOVELAND LOVELAND / BERTHOUD 2383
2347
2506
2465
2002
1977
2100
2050
361
465
369
285
2716
233
2275
’13 ’14 ’15 ’16 ’17
GREELEY ’13 ’14 ’15 ’16 ’17
Homes Listed
449
Homes Sold
292
244
155
111
’13 ’14 ’15 ’16 ’17
GREELEY AREA 3689 2997
4153 3559
4230 3584
4097
3851
3515
3388
WINDSOR 631
265
241 ’13 ’14 ’15 ’16 ’17
Homes Listed
Homes Sold
*Greeley, Evans, Ault, Eaton, Johnstown, Kersey, LaSalle, Mead, Milliken
WINDSOR / SEVERANCE
’13 ’14 ’15 ’16 ’17
Building Permit 2-Year History Single-Family (Attached and Detached)
BERTHOUD
154 1068 819
997
787
1056 824
1311
1505
1021
1007
’13 ’14 ’15 ’16 ’17
Homes Listed
Homes Sold
Includes all listing types, except mobile/manufactured. Source: MLS, residential and attached homes only.
492
451
435
’16 ’17
WELLINGTON
273
188
’16 ’17
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Community service and philanthropy is an important piece of The Group’s cultural fabric.
Our Commitment to Our Customers GROUPMortgage, LLC
Our mission since 1976 has been to “help people get where they want to go on time” — closing on time is one of the top priorities for both buyers and sellers. A high performance team — Realtor®, lender, Title Company — is required to accomplish this goal. 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. We have partnered with industry leaders — Cornerstone Home Lending, Inc. and Stewart Title — to bring a high level of accountability to each phase of the real estate transaction. In 2017 we opened The Source Property Management. The Source employs a highly motivated and experienced team of people committed to providing a superior level of property management services and convenience to our investor clients. Our affiliation with Leading Real Estate Companies of the World (LRE) provides The Group with a network of high quality companies standing ready to assist our customers who are relocating outside of Northern Colorado. The Military on the Move program gives us the opportunity to help active servicemen and women and veterans. Luxury Portfolio offers state-of-the-art marketing for our luxury listings by providing exposure to potential buyers throughout the world.
The Group’s Relocation Department provides information, area tours, and other services to corporate employees relocating into and out of the area. The Group has six convenient locations to serve our customers throughout Northern Colorado. Our Old Town Fort Collins Office doubles as an information center for visitors to the Old Town area. Our Centerra Office, located adjacent to the Loveland Visitors Center, serves as a regional office for our Greeley, Berthoud, Johnstown, and Longmont customers. 10
YEAR-END REPORT FOR 2017
Our Commitment to Our Communities The Group’s commitment to our communities is demonstrated in countless ways. GroupGives was bestowed the 2017 Fort Collins Board of Realtors’ Housing Hero Award that recognizes an individual or an organization that seeks to ensure that Fort Collins’ housing future is diverse, affordable, available, sustainable, safe and healthy. The Group was recognized as the United Way of Larimer County’s Top Employee Giving Campaign in 2015 and 2016. We exceed that level of giving in 2017. Philanthropy is a core value at The Group. Our employees serve on nonprofit boards of directors and contribute an average of 108 volunteer service hours each year. The Group is a sponsor of Visit Fort Collins, Sculpture in the Park in Loveland, Everitt Real Estate Center at Colorado State University, WomenGive, Colorado State University Athletic Department, and Respite Care. Christmas on Wheels, an annual project funded by Group Partners, gave 25 new bicycles to children of Project Self-Sufficiency clients at Christmas. The Group Scholarship is a full-tuition scholarship awarded annually to a Northern Colorado high school senior who will be entering the Colorado State University College of Business as a freshman. The 2017 scholarship was awarded to Madison Montgomery, a graduate of Windsor High School. A fundraiser in October held by the administrative staff raised dollars for UC Health Cancer Center.
GroupGives, funded by Group Partners, is a donor-advised fund managed by the Community Foundation of Northern Colorado. In 2017, GroupGives awarded $143,000 to local nonprofit organizations working to provide housing for men, women and children in Northern Colorado. Over $20,000 was given to the Gulf Coast Hurricane Relief Fund and those dollars were generously matched by a grant from the Bohemian Foundation. Organizations that received grants from GroupGives in 2017 include: Homeless Gear/Murphy Center Weld RSVP House of Neighborly Service Loveland Habitat for Humanity Disabled Resource Services Be the Gift Room4Hope Loveland Rotary Paint Our Town Alternatives to Violence Loveland Housing Authority Good Samaritan Front Range Village CASA Larimer County Since its inception in 2013, the fund has awarded $380,000 to area organizations. Over 100 Group Realtors and staff gathered for the Second Annual GroupGives Back Day. Seven area organizations benefited from hands-on assistance from the volunteers: Fort Collins Habitat for Humanity, Faith Family Hospitality, Elderhaus, Respite Care, Career Closet, Be The Gift, and Weld RSVP. www.thegroupinc.com
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Leaders in Real Estate
© January 2018 The Group, Inc.
Harmony Office 2803 E. Harmony Road Fort Collins, CO 80528 970.229.0700
Horsetooth Office 375 E. Horsetooth Road Fort Collins, CO 80525 970.223.0700
Centerra Office 5401 Stone Creek Circle Loveland, CO 80538 970.613.0700
Mulberry Office 401 W. Mulberry Street Fort Collins, CO 80521 970.221.0700
Old Town Fort Collins Office 121 E. Mountain Avenue Fort Collins, CO 80524 970.493.0700
Loveland Office 1401 W. 29th Street Loveland, CO 80537 970.663.0700
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