Grand Junction Real Estate Predictions for 2025
The real estate market is always shifting, and 2025 is shaping up to bring some exciting changes here in Grand Junction! Whether you're thinking about buying your first home, upgrading to something bigger, or selling the house you’ve made memories in, it helps to know what’s ahead. We’ve broken down the latest trends and what they mean for you, so you can feel confident about your next steps.
Healthy Growth is on the Horizon
In 2024, the number of real estate transactions mirrored the pace of 2023, with approximately 4.1 million home sales (graph above). The year started with tight inventory and limited options for buyers; but as the year progressed, inventory began to loosen up. This shift, paired with signs of stabilization in the market, hinted at a brighter future for those looking to make a move.
Looking ahead to 2025, the market is projected to see a 9% increase in home sales, much like the steady job growth and rising business confidence we are seeing today. These economic factors are expected to create a more dynamic housing market, offering more opportunities for both buyers and sellers. With inventory levels improving and transactions expected to rise, 2025 might just be the year you find the home of your dreams.
An Older, Richer Demographic is Controlling the Market
Demographics continued to shift in 2024, reshaping the housing market. The average age of first-time homebuyers climbed to 38, compared to 35 in 2023—reflecting the financial hurdles younger generations face.
Only 24% of all home purchases this year were by first-time buyers, marking an all-time low. On the flip side, the typical home seller’s age reached 63, the oldest we’ve seen, and 26% of all transactions were paid in cash—a record high.
In 2025, the focus will be on helping first-time buyers overcome these challenges. Preparing early by gathering financial documents, securing pre-approvals, and staying ready to act when rates dip can make all the difference. While affordability remains a concern, there’s hope for younger generations as the market continues to adjust and more programs become available to assist with down payments and financing.
Mortgage Rates: It’s Looking Like 6% Will Be the New Normal
Mortgage rates in 2024 were a rollercoaster. Despite the Federal Reserve cutting rates multiple times, mortgage rates didn’t follow suit as expected (depicted in the graph below).
The blue line represents the Fed-funded rates, while the red line denotes mortgage rates. They often coincide, but they deviated after a rate cut in late 2024.
With today’s high national deficit and less mortgage money available, it became clear With today’s high national deficit and less mortgage money available, it became clear that 2-3% rates were an anomaly of the past. As we move further into the year, we can expect buyers to begin adjusting to the idea of 6% being the “new normal.”
Mortgage rates are anticipated to fluctuate between 5.8% - 6.2%. While rate cuts by the Fed are expected, buyers should remember the Federal Reserve doesn’t directly control interest rates.
The market is becoming more conditioned to higher rates, with many seeing 6% as a reasonable deal compared to earlier spikes at 8%. Staying informed and working with a knowledgeable agent can help buyers lock in the best rates when they are available.
More Inventory is Balancing Out the Market
One of the bright spots in 2024 was the gradual increase in housing inventory, thanks to steady efforts by builders and sellers returning to the market. The graph below shows how inventory levels were 30% higher than the year before as we neared the end of 2024, giving buyers more options and creating a more balanced market.
And it is always important to note that life-changing events—marriages, relocations, and family expansions—will continue to keep the housing market active.
Heading into 2025, inventory is expected to improve even further. Builders are keeping pace, and more sellers are likely to list their homes as fiscal policies stabilize post-election. This pent-up seller release, combined with population growth, is poised to create a more dynamic market where buyers have more choices and sellers find prepared buyers more quickly.
(The blue line in the graph below shows new-build inventory compared to existing inventory.)
Will 2025 Finally Be a “Normal” Housing Market?
Real estate doesn’t have to be overwhelming—especially when you have the right team by your side. With more homes expected to hit the market and steady mortgage rates, 2025 might just be the perfect time to make your move. If you’re ready to dive in or just want to chat about your options, we’d love to help. Give The Janice Burtis Team a call today, and let’s make your real estate dreams happen together!
