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.
🔍 Spotlight
Key Insights from the Global Real Estate Services Market Report
Explosive Market Growth: The global real estate services market, valued at $105 million in 2023, is projected to surge to $189.6 million by 2032, with a robust CAGR of 7.0%. This growth highlights the expanding opportunities in both residential and commercial real estate sectors as consumer buying power and demand for diverse real estate services increase.
Rising Demand for Premium Services: With increasing disposable incomes and shifting housing preferences, there's a noticeable uptick in demand for luxury and green real estate services. Remote work trends are driving a preference for larger homes with dedicated workspaces, influencing both residential and property management markets.
Regional Dynamics: North America led the market in 2023, fueled by robust growth in commercial real estate and evolving office space needs. The expanding influence of technology and e-commerce is reshaping demand for warehouses and modern office spaces, further driving the real estate sector's vitality in the region.
Click to access the full report and dive into detailed analyses, charts, and forecasts that reveal how these trends might impact your real estate investments and strategies!
Discover Affordable Homes in California's Stunning Landscape
Explore Emerging Markets: California's housing prices are dropping in several scenic cities. Discover the 14 cities where home values are declining, including Sausalito, where prices fell by over $41,000, and McKinleyville, with a 2.82% decrease.
Maximize Investment Potential: Find investment opportunities in picturesque towns like Kelsyville and Lakeport, where home values are under $370,000. Capitalize on price drops in areas like Arcata, with a 3.98% decline, ensuring affordability and growth potential.
Secure Your Dream Home: Take advantage of significant price drops in cities like Willits, with a 10.01% decrease, and Eureka, where home values fell by $17,517. Enjoy the unique blend of affordability and California's natural beauty in these rapidly evolving markets.
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👉 More Stories
Banks are also feeling the pressure, with regulators demanding higher reserves and downgrading loans. This environment has created a mantra within the industry: “Survive through 2025.”
One of the nation’s largest home builders will not be able to build an isolated housing development on 286 acres of farmland in Burlington County
What Can Small Town America Offer Home buyers? Seeking both affordability and a sense of purpose? Check details inside
🛠️ Toolkit
Why Buying a Second Home First is a Game-Changer
Maximize Your Investment: Learn how buying a second home in an affordable location like the Catskills can help you build equity faster without the financial strain of urban real estate. For example, a couple invested $372,500 in the Catskills instead of $1.5 million in Manhattan.
Financial & Tax Advantages: Discover the benefits of "rentvesting" with potential tax deductions on mortgage interest and property taxes, plus rental income opportunities. A $300,000 investment required only a $60,000 down payment compared to $300,000 for a city home.
Expert Strategies for Success: Gain insights into evaluating property potential by analyzing local market trends, economic growth, and rental demand. Partnering with real estate experts can help you find prime properties that offer personal enjoyment and strong rental income.
📸 Dwelling’s
An entire Town in California is for sale near San Diego includes 28 buildings, mix of apartments, single-family homes and commercial properties for $6.6M
😉 For the Road
And…that's a wrap on this edition!
Got questions or feedback? write to us [email protected] - we'd love to hear from you.
