Can you do a video about homeowner insurance trends in your area? IMO...skyrocketing homeowner insurance rates will have an oversized affect on market health. I'm hearing $15K to $20K annual premiums in high wildfire prone areas. Daily Mail just published an article about rates skyrocketing in California. State Farm informed the insurance Commissioner "it wants to raise prices by 30 percent for homeowners, 36 percent for condo owners, and 52 percent for renters. The California Department of Insurance had already approved two State Farm requests that saw citizens home insurance rise drastically, including a 6.9 percent hike at the start of last year and a 20 percent rise that began this past March." If State Farm doesn't get their rate increase approved, they are threatening to pull out of California.
Great idea and question. Insurance rates are killing everyone everywhere. Our personal property insurance went up 32% from 2023 to 2024. I have a home in the wildfire interface. I still consider us "fortunate" compared to what I hear clients declare who are coming from Florida, Cali, and Texas where their relative increases are even more. As you know, Insurance companies are spreading the pain to all policy holders to make up for those getting whacked by hurricanes and fires in certain states. Over the last two years we have seen a spike in pending sales falling out of escrow due to high insurance quotes that push buyers over their monthly payment abilities. For example, we accepted a contingent offer on a property we were selling here. The buyer of that property was from California, who was under contract on their California home with a buyer. Their buyer had to pull out of that escrow because they could not find insurance in Cali required by their lender. The domino effect cause the California sale to fail and they had to pull out of escrow on our Idaho Seller's property. The compound affect on buyers between higher prices, higher mortgage rates, higher property taxes, and now higher insurance rates is unprecedented. Thanks for the comment
Hey Kory In Rocking R the homes coming up for sale range from 800,000 to 1 million. They are not selling fast. Interesting the new development in Trail Ridge are in the same price range. It will be interesting to see how long will take yo sell. My friend home on Rocking R home has been on the market since May, has been lowered once, and had only 4 showings. Love listening to your videos explaining what's going on in the market. Say hi to Bonnie for us.
Hey Janet. Great perspective from someone who lives in one of the more desirable neighborhoods in our area. The price point of 800K+ has much fewer buyers than those 800K and under. That means those homes sit longer waiting for the perfect buyer. We are also seeing this summer is under performing thus far. I think buyers are fatigued. It is also an election year, which typically are down years relative to the other three in a cycle. Bottom line is sellers who want to sell need to price well. Good to hear from you!
Thank you for the detailed analysis, Kory. Your perspective really makes these stats comprehensible. With the continued endurance in the market, are you seeing any drop in asking prices? Or are the owners of the porcupine properties still ignoring market reality?
Hey Dave. I would say price drops are very common right now. There are those 25%-30% which go within the first week or two because they are priced right. Anything else, if they are wise, gets a price drop. Most price drops are 5K here or 10K there...not a significant drop. Then another two weeks and 5K again...sellers are very slow to accept what the market is telling them, and as a result, slow to lower prices. We call it "Chasing the Market Down" It is a real balance right now as listing agents to "encourage" our sellers to price to the market...aka "less than what you think your home is worth." If I were to sum it all up...I think the market is trending back to the buyers. Thanks Brother!
Awesome getting your expert explanations telling rhe story behind the numbers. Thank you, Kory!
As always, we appreciate you!
Can you do a video about homeowner insurance trends in your area? IMO...skyrocketing homeowner insurance rates will have an oversized affect on market health. I'm hearing $15K to $20K annual premiums in high wildfire prone areas. Daily Mail just published an article about rates skyrocketing in California. State Farm informed the insurance Commissioner "it wants to raise prices by 30 percent for homeowners, 36 percent for condo owners, and 52 percent for renters. The California Department of Insurance had already approved two State Farm requests that saw citizens home insurance rise drastically, including a 6.9 percent hike at the start of last year and a 20 percent rise that began this past March." If State Farm doesn't get their rate increase approved, they are threatening to pull out of California.
Great idea and question. Insurance rates are killing everyone everywhere. Our personal property insurance went up 32% from 2023 to 2024. I have a home in the wildfire interface. I still consider us "fortunate" compared to what I hear clients declare who are coming from Florida, Cali, and Texas where their relative increases are even more. As you know, Insurance companies are spreading the pain to all policy holders to make up for those getting whacked by hurricanes and fires in certain states. Over the last two years we have seen a spike in pending sales falling out of escrow due to high insurance quotes that push buyers over their monthly payment abilities. For example, we accepted a contingent offer on a property we were selling here. The buyer of that property was from California, who was under contract on their California home with a buyer. Their buyer had to pull out of that escrow because they could not find insurance in Cali required by their lender. The domino effect cause the California sale to fail and they had to pull out of escrow on our Idaho Seller's property. The compound affect on buyers between higher prices, higher mortgage rates, higher property taxes, and now higher insurance rates is unprecedented. Thanks for the comment
Hey Kory
In Rocking R the homes coming up for sale range from 800,000 to 1 million. They are not selling fast. Interesting the new development in Trail Ridge are in the same price range. It will be interesting to see how long will take yo sell. My friend home on Rocking R home has been on the market since May, has been lowered once, and had only 4 showings. Love listening to your videos explaining what's going on in the market. Say hi to Bonnie for us.
Hey Janet. Great perspective from someone who lives in one of the more desirable neighborhoods in our area. The price point of 800K+ has much fewer buyers than those 800K and under. That means those homes sit longer waiting for the perfect buyer. We are also seeing this summer is under performing thus far. I think buyers are fatigued. It is also an election year, which typically are down years relative to the other three in a cycle. Bottom line is sellers who want to sell need to price well. Good to hear from you!
Thank you for the detailed analysis, Kory. Your perspective really makes these stats comprehensible. With the continued endurance in the market, are you seeing any drop in asking prices? Or are the owners of the porcupine properties still ignoring market reality?
Hey Dave. I would say price drops are very common right now. There are those 25%-30% which go within the first week or two because they are priced right. Anything else, if they are wise, gets a price drop. Most price drops are 5K here or 10K there...not a significant drop. Then another two weeks and 5K again...sellers are very slow to accept what the market is telling them, and as a result, slow to lower prices. We call it "Chasing the Market Down" It is a real balance right now as listing agents to "encourage" our sellers to price to the market...aka "less than what you think your home is worth." If I were to sum it all up...I think the market is trending back to the buyers. Thanks Brother!