Where Homeowners Insurance Is Rising
#49
After 205 days on the market and at least a $14M price cut, Kanye West has reportedly found a buyer for his concrete California beach property. Kanye first purchased the Malibu mansion, designed by the esteemed minimalist architect Tadao Ando, for $57.25M. After demolishing the kitchen and bathrooms, removing the windows, wiring, and plumbing, and leaving the empty shell open to the elements for months, he put it back on the market for $53M.
If you squint your eyes and tilt your head a bit, can you see the potential in this massive, multi-million-dollar ‘beach box’? 💸
🔊Today’s Top Podcast Rec:
Gary Ashton’s approach to serving buyers and sellers has pushed his team, the Ashton Real Estate Group of RE/MAX Advantage, to become not only the #1 team in Tennessee, but the top-performing team in the world. Catch the latest episode of The Inspection Period for Gary’s take on re-equipping your team in this post-settlement market, bundling moving services with your traditional offerings, the KPIs worth tracking, and more.
TRACK THE TRENDS
MARKETS
Insurance Rates Rise To Cover Risk
Insurance rates for homeowners are on the rise again, with big increases approved this spring that are pushing premiums to new records. In Q2, growing premiums particularly affected homeowners in California, Minnesota, and states east of the Mississippi River, but more rate hikes are likely on the horizon nationwide.
By the numbers:
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This year, the average premium for homeowners insurance hit $1,779—and it’s rising faster than in years prior. Renewal premiums are also up 25%.
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More than 19 insurance companies, including Progressive and Nationwide, increased premiums by 25% or more in Q2, impacting tens of thousands of policyholders.
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American Modern Property and Casualty Insurance Co. experienced the highest rate increase nationwide, with a 56.4% increase in California for its over 17,000 policyholders.
For real estate agents, it’s important to note that homeowners insurance is a significant annual expense that can impact buyers’ debt-to-income ratio. In some cases where the buyer’s finances are nearly maxed out, expensive insurance can send the debt-to-income ratio through the roof—and disqualify the buyer.
REC ROUNDUP
The Friday Five
📖 The AI revolution. How real estate investors can capitalize on the AI boom through REITs.
👀 Horsing around. Tracy Tutor’s surprising backup plan if real estate didn’t work out.
👀 Let’s Get to the Point. Gen Z will give up just about anything (even this!) to afford a down payment.
💡Nailing networking. Glennda’s advice for being interested—not just interesting.
💡Slim pickings. See the 5 metros with the lowest supply of luxury listings.
WHAT’S NEW FROM ESTATE MEDIA
From Standstill To Skyrocketing
If you’re a fan of good news, the latest episode of Scott’s Market Watch gives agents three more reasons to celebrate: Mortgage rates are falling, luxury home sales are through the roof, and buyers’ credit scores keep getting better. Watch Scott’s coverage of the top three real estate trends unfolding this summer—and changing how agents, builders, and real estate investors do business.
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