Year in Review: 2024 Grand Junction Real Estate Market Update
In 2024, Grand Junction’s housing market had its ups, downs, and a few surprises. From fluctuating mortgage rates to the impact of inventory shortages and legal developments, this year has been dynamic for buyers, sellers, and real estate professionals.
Ready for the recap?
The Janice Burtis Team has compiled the four critical factors that influenced the market this year. Let’s provide some insights into how each of these trends has affected our local real estate market.
1. Interest Rates
One of the most significant trends this year has been the ever-evolving interest rates. Mortgage rates remained elevated for much of the year, making borrowing more expensive for homebuyers. For example, the 30-year fixed mortgage rate fluctuated between 6.5% and 7.2%, according to Freddie Mac, a considerable jump from pre-pandemic lows.
This rise in rates had a direct impact on monthly payments, with buyers facing higher costs to finance their homes. These elevated rates discouraged some potential buyers, cooling demand and contributing to slower market activity compared to recent years.
Even the beginning of 2024’s 4th quarter saw some yo-yo interest rates. However, experts predict that while rates may fluctuate in the near term, they are expected to gradually decrease over the next year, providing some relief for buyers looking to enter the market.
2. Housing Inventory Fluctuations
Low inventory levels have been a persistent issue in 2024, which further fueled competition among buyers. However, a late-year increase in listings brought some relief. By September 2024, inventory levels surged by over 20% compared to the previous month, thanks in part to price drops and seasonal shifts in the housing market.
While this inventory boost has provided buyers with more options, the overall shortage of available homes continues to drive up prices in many areas, keeping the market competitive despite the rise in listings.
3. Home Affordability Challenges
Affordability has been a key concern throughout 2024, driven by the combination of higher interest rates and rising home prices. According to a report by Bankrate, housing affordability hit its lowest point in a decade this past year.
With home prices still climbing in many markets, the median U.S. homebuyer was spending more than 30% of their income on housing, exceeding the typical affordability threshold. This has made it harder for first-time buyers to enter the market and has widened the gap between potential homeowners and those being priced out. However, we expect to see these difficulties ease slightly with lowering interest rates.
4. NAR Lawsuit
Of course, one of the most noteworthy legal developments this year has been the National Association of Realtors (NAR) lawsuit—which resulted in a $2 billion settlement. The lawsuit targeted buyer-broker commissions and has prompted changes in how real estate commissions are structured.
As a result, it’s crucial for buyers to have a conversation with their agents to discuss negotiating commissions with the seller—or even wrapping it up into their financing package. This legal shift is expected to have a lasting impact on the industry and homebuyers in the years to come.
How has this affected Grand Junction?
Overall, the Grand Junction market saw steady growth in home prices and a rise in buyer activity throughout 2024.
The median home price increased by 6.84% year-over-year, bringing the average price to $392,000.
Homes sold relatively quickly, not lasting more than an average of 54 days on the market, and inventory improved later in the year—providing buyers with more options, though competition remained strong.
These factors have combined to create a market that is more complex and competitive than ever before. So as we move into 2025, it’s important to work with a real estate expert who can adapt to the changes of the market and guide you toward real estate success. The Janice Burtis Team has over 20+ years of experience, and we would be happy to set you on the path to real estate success in 2025.
Call, text, or email us today to get started!
970.270.4444 | Janice@JaniceBurtis.com | 120 Park Drive, Suite #200, Grand Junction, CO 81505
