April 2023

APRIL NEWSLETTERDENVER #4 MARKET | BOOMERS KEEP BUYING | RECIPE OF THE MONTH

DENVER RANKED 4TH STRONGEST HOUSING MARKET IN THE NATION

The last year or so has been a volatile one in housing, largely thanks to rising mortgage rates, which pingponged from the low 3% range to over 7% at one point in 2022. Those rates have eaten into buyers’ budgets, causing a pullback in overall demand – and home prices.

In the Denver metropolitan statistical area, though, even waning demand can’t alter the market much – not with the ultra-low supply the area is dealing with. In fact, despite the changes today’s higher mortgage rates have ushered in, Denver still ranks as the fourth-strongest housing market in the nation, according to the U.S. News Housing Market Index.

The number of for-sale listings in Denver is incredibly low. As of January, the region had just a 1.9-month supply of housing – well below the national 3.2-month supply. (For reference, around six months is considered balanced, where neither buyer nor seller has the upper hand).

Surprisingly, Denver’s less-than-two-month supply is actually an increase compared to the prior year. In December 2021, supply was at just 0.43 – meaning less than a half month’s supply was available on the market.

The low unemployment, low supply and improving customer sentiment, Denver’s housing market is poised to carry on strong. While increased builder confidence could lead to more supply, forecasts predict building permits will fall – at least for the next few months. This should keep supply low and demand strong for the area’s very limited housing.

BOTTOM LINE: Low inventory means fewer choices for Buyers, which means more competition on the few homes that do become available for sale. Prices will remain high and the Denver market strong for the foreseeable future.

BOOMERS KEEP ON BUYING

Baby Boomers overtake Millennials as the largest group of home buyers.

• Baby boomers now make up 39% of home buyers – the most of any generation – an increase from 29% last year.
• Generation Z now makes up 4% of buyers, with 30% of Gen Z moving directly from a family member’s home into homeownership.
• When relocating, all generations are moving farther distances, with younger boomers (ages 58-67) moving the greatest distance at a median 90 miles away.

The share of baby boomers has surpassed millennials and now makes up the largest generation of home buyers, according to the latest study from the National Association of Realtors®.

The 2023 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences of recent home buyers and sellers across generations¹, found that the combined share of younger boomer (58 to 67 years old) and older boomer buyers (68 to 76 years old) rose to 39% in 2022, up from 29% the year prior. Younger millennials (24 to 32 years old) and older millennials (33 to 42 years old) have been the top group of buyers since 2014, but they saw their combined share fall from 43% in 2021 to 28% last year.

Why does this matter? It means Baby Boomers are cashing out on (likely) a ton of equity they built in the homes they raised families in. The homes they are selling will likely be repurchased by younger individuals looking to start their own lives. Meanwhile, Boomers are able to pay cash (or put a significant amount down) on a replacement property in which to spend their Golden Years. Many Boomers are downsizing and moving closer to family.

With any luck, inventory may rise as Boomers sell their long-time homes and settle into retirement and beyond in smaller spaces.

SPRING'S TRENDIEST DESIGN THEMES

Looking to redo your living room this Spring? Here are 6 design trends that are all the rage:

1. Statement stone is a trending material with a natural feel.
2. Scalloped edges are back.
3. Textured fabrics are having a major moment.
4. Saturated colors are the "it" look.
5. Curved furniture is making a comeback.
6. The board-and-batten siding style is on the rise.

Looking to get the full scoop? Check out the article from Insider here. RECIPE OF THE MONTH: CARROT CAKE

Just in time for Easter - the best carrot cake recipe ever. This particular recipe from the NY Times has over 6,000 5 Star reviews. If you ever had the urge to make a carrot cake, consider this your sign.INGREDIENTS:

FOR THE CAKE:

• 2 cups all-purpose flour
• 2 teaspoons baking powder
• 2 teaspoons baking soda
• 2 teaspoons ground cinnamon
• ¾ teaspoon salt
• 3 cups grated carrots (you can grate the carrots in a food processor fitted with a shredding blade)
• 1 cup coarsely chopped walnuts or pecans
• 1 cup shredded coconut, sweetened or unsweetened
• ½ cup moist, plump raisins (dark or golden) or dried cranberries
• 2 cups sugar
• 1 cup canola or safflower oil
• 4 Large eggs

FOR THE FROSTING:

• 8 ounces cream cheese, at room temperature
• 1 stick (8 tablespoons) unsalted butter, at room temperature
• 1 pound (3 ¾ cups) confectioners' sugar
• 1 tablespoon fresh lemon juice or ½ teaspoon pure lemon extract
• ½ cup shredded coconut, optional

DIRECTIONS:

1. Position the racks to divide the oven into thirds and preheat the oven to 325 degrees. Butter and flour three 9-inch round, 2-inch deep cake pans,flour the insides and tap out the excess.
2. Whisk together the flour, cinnamon, baking powder, baking soda and salt and set aside. In another bowl, stir together the carrots, chopped nuts, coconut and raisins.
3. Working in a mixer fitted with the paddle attachment, or in a large bowl with a whisk, beat the sugar and oil together until smooth. Add the eggs one by one and continue to beat until the batter is even smoother. If you are working in a mixer, reduce the speed to low, if you're working by hand switch to a large rubber spatula, and gently stir in the flour mixture — mix only until the dry ingredients disappear. Just as gently, stir in the chunky ingredients.
4. Divide the batter among the baking pans and slide the pans into the oven. Bake the cakes for 40 to 50 minutes, rotating the pans top to bottom and front to back at the midway point. The cakes are properly baked when a knife inserted into the centers of the cakes comes out clean; the cakes will just start to come away from the edges. Transfer the pans to cooling racks, cool for 5 minutes, then turn out onto racks to cool to room temperature. (At this point, the cakes can be wrapped airtight and kept at room temperature overnight or frozen for up to 2 months; thaw before frosting.)
5. Working in a mixer fitted with the paddle attachment, beat the cream cheese and butter together until smooth and creamy. Gradually add the confectioners' sugar and continue to beat until the frosting is velvety smooth. Beat in the lemon juice or extract.
6. If you'd like to have coconut in the filling, scoop out about ½ of the frosting and stir the coconut into this portion.
7. To frost the cake, place one layer of the cake, right-side up, on a cardboard round or a cake plate. If you've added coconut to the frosting, use half of coconut frosting to generously cover the first layer. Use an offset spatula or a spoon to smooth the frosting all the way to the edges of the layer. Top with the second layer, this time placing the cake top-side down. Frost with the remainder of the coconut frosting. Top with the last layer, right-side up and use the plain frosting to cover the top — and the sides, if you want – of the cake. Finish the top layer with swirls of frosting. If you want to top the cake with toasted nuts or coconut, sprinkle on these ingredients now, while the frosting is soft. Slide the cake into the refrigerator for 15 minutes, just to set the frosting.
8. Serving: The cake can be served as soon as the frosting is set. It can also wait, at room temperature and covered with a cake keeper, overnight. The cake is best served in thick slices at room temperature and, while it's good plain, it's better with whipped cream, vanilla ice cream or even some lemon curd with a little whipped cream folded in.

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OUR PROMISE TO OUR CLIENTS

This could be one of the largest and most important financial decisions you will make in your lifetime, and you deserve an experienced partner that understands the intricacies of Colorado real estate.

We promise to always keep you informed about the rapidly changing market and educate you throughout the entire process. We promise to protect your best interests and treat your home or investment like it’s one of our own. We promise to work our hardest to find the perfect home for you and your family with as little stress as possible.  

We value your trust and hope to continue supporting you in your lifetime even after your sale or purchase is complete. This goes beyond real estate to us, it’s the beginning of a lifelong friendship.

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