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- $189.6M Growth by 2032, Declining Home Values, Insurance Surge & More
$189.6M Growth by 2032, Declining Home Values, Insurance Surge & More
Explore 14 cities with falling home values, the pressure on banks, the impact on major home builders and more real estate insights
Where real property meets real data, every day
🗞️ In This Edition
Homeowners insurance rose 21%
Is RE services to $189.6M by 2032?
14 cities where home values are declining
Banks are also feeling the pressure
Largest home builder will not build
Small town America offer
Buying a second home first
Plus: Entire Town in California is on sale
📈 Market Numbers
S&P 500 | 5,436.44 | - 0.50% |
Dow 30 | 40,743.33 | + 0.50% |
Bitcoin USD | 66,174.83 | - 1.76% |
S&P REIT | 352.98 | + 0.58% |
FTSE NAREIT | 782.61 | + 0.86% |
Numbers as of July 30th 2024 closing
30-Yr Fixed RM | 6.81% | - 0.01% |
15-Yr Fixed RM | 6.30% | - 0.01% |
30- Yr FHA | 6.40% | + 0.15% |
30-Yr Jumbo | 6.99% | - 0.01% |
30-Yr VA | 6.26% | - 0.02% |
Average Rates as of July 30th 2024 closing
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🤌🏻 Real Trends
Homeowners insurance premiums rose 21% last year
Dramatic Price Hike: Home insurance premiums skyrocketed by 21% from May 2022 to May 2023, according to Policygenius. This sharp increase reflects the broader trend, with average premiums climbing from $1,034 in 2012 to $1,411 in 2021, and expected to rise further. Rising severe weather events and higher claims are driving these costs up.
Uncertain Climate Impact: While severe weather is a major factor, how insurers are incorporating climate risk into premiums remains unclear. The industry lacks detailed public data, making it challenging to predict future rate increases accurately. Insurers face a dilemma: balancing rising weather-related risks with historically unpredictable losses.
Fewer Insurance Options: Insurers like State Farm and Allstate have ceased accepting new policies in high-risk states like California and Florida. This contraction leaves homeowners with fewer options, pushing them toward state-run programs such as Florida’s Citizens' Property Insurance or California's FAIR Plan, which often provide less comprehensive coverage.
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