Uninsurable?

As building costs, fraud, and risk from wildfires and other climate disasters continue to rise, some insurance companies are backing away from issuing new homeowner policies in the Golden State. What does this mean for potential buyers and sellers?

CHIC (Pearl)

If you’re thinking of buying a home in California, you should get a head start on finding a home insurer who will give you a good policy at an affordable rate before making an offer. Understanding your annual expenses is a key factor in determining how high you’re willing to go.

GEEK (Kevin)

Insurance companies aren’t nonprofits, and they’re not stupid either. They already know the risks of insuring properties in earthquake country, and the recent trend of wildfires hasn’t made the equation any more favorable to them. In other words, don’t hate the player, Hate the game!

The Census Sells

The U.S. Census Bureau recently released data from the once-a-decade count, and the report shows that our share of senior residents expanded significantly from 2010 to 2020 and faster than any decade in more than a century. Meanwhile, birth rates continue to decline as more younger couples delay having children to focus on education and careers. The AP has more on the numbers.

As usual, the Census contains some valuable nuggets of data that sellers can leverage to successfully market their homes. For example, 1 in 6 Americans is 65 and older — up from 1 in 8 in 2010 — and our median age has risen eight years since 1980 to 38.8. That means even the perfect social media post may not reach as many potential buyers as a traditional direct mail campaign.

Additionally, it’s interesting to note that 5% of households included three or more generations, and about 19% of Americans reported living with relatives. Given these numbers, it would be wise to highlight an existing ADU on your property — or the potential for adding one. On the flip side, about 28% of households were solo occupants. That’s 35 million possible buyers who may not care as much about schools and other concerns for families and couples.

When the Fed speaks, markets listen.

ICYMI: In an ongoing quest to fight inflation, the Federal Reserve recently raised its benchmark rate by 0.25 points to 4.75%-5%. So what does that mean for the housing market? The primary impact is reduced demand as buyers think twice about taking out long-term loans. Ironically, less demand could lead to lower home prices.

The Skimm explores this conundrum.

Water restrictions rolled back

Governor Newsom announced that he’s ending the call for a statewide voluntary 15% reduction in water use in place since July 2021.

Meanwhile, local water agencies that were expecting just 35% of requested supplies from the state are now on tap to get 75%.

The 3.1 million acre-feet of water that will provide equates to more than double the original projection of 1.4 million acre-feet.

*In case you’re wondering, an acre-foot is about 326,000 gallons!

Here’s more on the story from the LA Times.

The drought is over! (Or is it?)

The bomb cyclone hasn’t put a permanent end to California’s water woes. But with restrictions rolled back, what are you looking forward to doing with a little extra water?

CHIC (Pearl)

I don’t know about you, but I’m ready for a long, luxurious, and languid trip to one of my favorite places: the shower! Two years ago, I cut back on bathing time to help reduce our water consumption, but speed showering often made me forget to clean a body part or two. And even though I promised Kevin I won’t stay in there all night, it will be nice to take my time.

GEEK (Kevin)

I mastered the art of the five-minute shower back in college, so I’m more excited about cleaning the house than scrubbing behind my ears. I’m planning to give our entire home a thorough once-over with a bucket, a mop, a sponge, and a good podcast on my wireless headphones. While I’m at it, I might even clean the shower — if Pearl ever decides to come out again!