Grand Junction Housing Market Predictions For 2024: What’s Happening With Rates, Prices & Inventory?

Are you wondering what’s going on with Grand Junction real estate this year? The market is always evolving, so it’s important to stay up-to-date if you’re eager to achieve your real estate goals. From declining sales to rising interest rates and inflation, let’s take a look at these crucial real estate trends to help you navigate today’s housing market.

Sales Volume is Down 

It’s time to face the facts: the real estate sales volume has decreased from an average of $3.4 million to $2.5 million over the last year. (That’s 27%!) This downturn marks the worst market conditions in terms of sales volume since the 1990s. 

However, there is a silver lining to this year’s market. Experts are predicting a late-year surge in sales and expect 40% of 2024’s sales volume to occur in the final months of the year. This anticipated surge indicates a robust finish to the year, offering exciting opportunities for both buyers and sellers.

Interest Rates & Inflation Are Up

Inflation has accumulated to 20% over the past four years, but the market is beginning to show some resilience. Buyers are learning to adapt and continue to enter the market despite less-than-savory interest rates.

As for interest rate predictions, experts from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors (NAR) predict that interest rates will end the year around 6.67%, with a slight decrease to 6.25% in 2025. 

Additionally, a single rate cut is anticipated between September and November, which could provide some relief to potential buyers.

Supply & Demand Are Both Growing 

First, let’s talk supply. Inventory levels are on the rise, with 36.7% more homes available on the market compared to last year, according to Realtor.com’s senior economist Ralph McLaughlin. This increase in inventory provides more options for buyers, making it an excellent time to explore the market and find the perfect home.

Demand remains exceptionally high, driven by the ongoing housing shortage and rising rent prices. Persistent rent hikes continue to put pressure on current renters, with 22 million claiming their rent is 30% of their income—and 12 million claiming it’s 50% of their income.

With rental rates up 30% from 2020, many people are flocking to the market and continue to put pressure on listing inventory.

This high demand keeps the market vibrant and competitive, offering sellers the opportunity to get great value for their homes. For buyers, it’s important to consult with a real estate professional to help with quick decision-making and a proactive approach to securing your dream home.

Market Demographics Are Shifting

The market demographics are shifting in an exciting way. In 2024, 31% of the buyer market consisted of first-time home buyers. Many people are getting assistance with their mortgage payments, making homeownership much more attainable.

It’s also important to account for the 45.5 million millennials who are in the “household formation” age. More family-oriented millennials are beginning to shape the market, and this wave of young buyers is creating a vibrant and dynamic future for real estate.

NAR Update

Our team understands that many of our clients are curious about how the NAR settlement will alter the upcoming housing market. So, let’s shed a little light on the situation.

What can buyers expect when it comes to agent compensation?

First things first, buyer agent commission has always been negotiable. That is something that has not changed, but where this conversation takes place is now up for debate. Buyer agent commission was typically stated on the MLS—and while listing advertising will still play a large part on the MLS, buyer agents are now expected to take these conversations offline.

This shift is an opportunity to enhance trust between real estate professionals and their clients. Agents are now encouraged to clearly present their value proposition, differentiate their professional skills, and ensure that compensation discussions are part of their client interactions. This emphasis on communication and trust-building sets the stage for stronger, more collaborative relationships in the industry.

For more information, you can visit NAR FAQs.

While the current real estate market presents a few challenges, it is still full of opportunities. It is important to stay informed and adapt to changes—whether you’re a buyer or a seller—so you can make smart, strategic decisions. The market is dynamic and exciting, and with the right knowledge and approach, there are many positive aspects to enjoy and benefit from.

If you have any lingering questions about the state of today’s housing market, make sure to give The Janice Burtis Team a call. We know the ins & outs of the Grand Junction market, and we are always eager to educate our community.