Hello Friends and Clients -
Hope your 2024 is off to a great start! The good news is that experts are predicting 2024 to be a better year in real estate. Market conditions are expected to improve as we see interest rates decline and hover in the mid-6% range, hopefully leading to more buyers and sellers entering the market in spring.
Interior design trends are moving back toward earth tones and dark wood accents, while luxury kitchens are all about high-end appliances and having not one but TWO islands, and the bigger, the better! For added color, think "orange is the new black" with "Peach Fuzz" declared as Pantone's color of the year for 2024.
Finally, it's never too early to start thinking about Valentine's Day. But if you are still recovering from Christmas, don't worry. We've got you covered with a chance to win one of three prizes for you and your sweetheart with our Herz Team Valentine's Giveaway.
If the predicted upswing in the real estate market is enticing you to think about making a change in 2024, let's connect!
With much appreciation for your business and friendship
– Leslie
From the 1970s to the 1870s, these decor currents
are coming in hot.
With 2024 fast approaching, it’s hard to grasp that we are almost a quarter of the way through the 21st century. And after spending the most recent few years in a tumultuous cycle of uncertainty, we’ve managed to regain a sense of normalcy due, in part, to the time and energy devoted to making our home environments a priority.
Now is the opportunity to reevaluate the decisions that were made to accommodate in-home offices or cozy nooks for cocooning, or to simply take your interior design to the next level. “A focus on previously underestimated areas of the home such as the hallway, pantry, utility room, and laundry room are coming center stage and enjoying a design uplift,” says Gemma Riberti, head of interiors at international trend forecasting agency WGSN. “Searches for ‘handmade’ and ‘eclectic interior design vintage’ are growing steadily on platforms such as Etsy or Pinterest,” she adds.
For more, we’ve spoken to a roster of ELLE DECOR A-List designers and industry experts from across the country to reveal some surprising—and not-so-surprising—home design trends set to unfold throughout the coming year (and beyond). From 1970—and 1870—period revivals to sinewy shapes and the appeal of handmade furnishings, here’s what we’ve uncovered.
Source: Elle Decor
A Better Year to Come for Homebuyers:
Five Key Insights for 2024
Following a year marked by declining home sales in 2022, all hopes were pinned on 2023. The bets were that 2023 would usher in a turning point for both the economy and the housing market. Nevertheless, last year left many people feeling disappointed.
Despite a moderating inflationary climate, the economy encountered additional hurdles with the Federal Reserve enacting multiple interest-rate hikes throughout 2023. These successive increases, totaling a cumulative one percentage point, added strain to every kind of borrowing. Consequently, mortgage rates surpassed 7.5 percent last October and November, pricing the average American family out of the housing market. To afford the median-priced home, Americans had to allocate more than 30 percent of their income, given that the qualifying income surpassed S105.000. In the Denver metro area, the qualifying income was notably higher, reaching $140,000 at the end of 2023. In the meantime, the challenges for potential first-time buyers extended beyond mortgage rates as rents continued to rise. This exacerbates difficulties in saving for a down payment, particularly considering that one in two renters already faces cost burdens. As a result, Denver was among the areas that witnessed a double-digit decline in home sales activity in 2023.
But there are signs in the market that there'll be better days for homebuyers next year.
Rates are already moving down. After surpassing the 7.5 percent threshold, mortgage rates have already started to move downward towards the end of last year. The Federal Reserve's decision to halt interest rate hikes played a pivotal role in bringing current mortgage rates down below seven percent. In the meantime, history suggests that inflation and interest rates tend to move in the same direction but with lags. Central banks usually lower interest rates when inflation falls to stimulate the economy But.,while inflation has been moving down since August 2022, interest rates have just started to follow that same downward trajectory. Thus, if inflation continues its downward trend, interest rates will move even lower, ultimately leading to further declines in mortgage rates in 2024. The 30-year fixed mortgage rate will likely fall below 6.5 percent by the end of the year.
Returning buyers to boost housing activity. When mortgage rates hover around 6.6 percent, the average American family can comfortably afford to purchase the median-priced home without spending more than 30 percent of their income on monthly payments. Nevertheless, in the Denver metro area, further reductions in mortgage rates, dropping below six percent, are necessary for the typical family in this area to avoid financial strain. Unfortunately, it isn't anticipated that mortgage rates will decline to such levels in 2024. However, even with a 6.5 percent rate, around 55,382 households in the Denver metro area (4.5 percent of all households) will once again be able to afford the median-priced home in the area. The influx of these "returning" buyers is expected to boost activity in the area later this year.
Denver is attracting high-earner Millennials. Breaking down by local demographics, the data indicates thJt the Denver metro area is drawing a substantial number of high-earner millennial renters who are relocating from other states. An estimated 9,254 households of higher-earner millennial renters (those earning above $100,000) have moved to Denver in 2022. While first-time buyers make up one in three sales, the influx of these high-earner millennial renters. coupled with the presence of returning" buyers, is anticipated to fuel growth in the local housing market in 2024.
Source: Nadia Evangelou, Housing Economist, Denver Metro Association of REALTORS®
Click here to complete a short survey by February 14th and you'll be entered to win one of these three prizes!
The Ultimate Winter Activity Guide for Colorado
Gather your loved ones to whip up some tasty recipes, and participate in our craftiest projects and awesome local activities together.
Everyone is sure to find something to enjoy in this handy guide – designed to help you plan a memorable winter!
Market Update
Denver Metro and Boulder Real Estate Statistics
GRATEFUL FOR OUR CLIENTS
Here is what our clients are saying about us!
"I am so thankful for the wonderful work and support of The Herz Team. Their team made the whole process so easy. Each staff person I worked with was a joy. Leslie is the complete professional; knowledgeable, smart, warm, thoughtful and attentive. Their excellent work allowed me to purchase my dream home. I would use them again without question. Thank you!" – Heather L.
