Posted on 01/05/2020 4:40:31 PM PST by karpov
Home sales are slowing in wildfire-prone areas of California as insurers retreat from high-risk regions, say real-estate agents and homeowners.
Insurance companies have continued to reduce their wildfire exposure in the past two years after paying more than $24 billion for California wildfire losses in 2017 and 2018. Home insurers have declined to renew policies for tens of thousands of homeowners across the state, and regulators expect more nonrenewals in the coming months.
Real-estate agents say potential buyers are having difficulty obtaining insurance and are backing out of purchases or lowering their offers after realizing how much insurance would cost, which can be thousands of dollars a year or more in wildfire-prone areas.
Lauralee Green, co-owner of Z Group Real Estate in Pollock Pines, Calif., now requires prospective buyers to submit an insurance quote before making an offer.
“I’ve had so many deals fall through,” she said. Ms. Green said she sold about $4.7 million in real estate last year, down from $8.8 million in 2018.
“We’re just going to get a bunch of houses sitting on the market that won’t sell,” she said.
Housing economists say the highest-risk areas in the state are relatively rural, and the effect of insurance pricing on the home market can be difficult to parse. But anecdotally, real-estate agents around the state say home insurance has become a major issue in certain areas.
Housing demand has been high in some of these communities as buyers have been priced out of bigger cities.
Increased insurance costs could slow the pace of home-price increases by making homes less affordable to middle-class buyers, said Jordan Levine, deputy chief economist at the California Association of Realtors.
“It really exacerbates an already challenging environment” for home buyers, he said.
(Excerpt) Read more at wsj.com ...
Here’s an idea: mount the smart meters on poles away from the houses, that way power surges don’t burn down neighborhoods.
Another tactic to further “Rural Cleansing”. Move the population into “Sustainable Communities”.
Just give them to illegals
My in laws are in Pollock Pines. They found a policy for around $3,000 a year. It wasn’t easy but they did it.
L
I bet if conservative-libertarian minded folks completely controlled Sacramento, the state would be booming within 3 years.
Good, glad to hear it...
Clear the brush. Leave PGE alone to run it’s own affairs.
A rural lifestyle is now a privilege. Glad I still have mine in mountain country Colorado.
While on the topic -> how much carbon did the fires they caused I mean suffered add to Gaia's lungs last year? Not that I'm concerned about the carbon, merely the real pollutant: 'hypocrisy.'
“We’re just going to get a bunch of houses sitting on the market that won’t sell,” she said.
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No kidding. One day the super bloated inflated prices of what ya get for a home in CA will be significantly adjusted.
Not if, but when...It’s coming.
If you want that mountain chalet with views... pony up.
If only Californians could do limited burns during the rainy season, clear the tinder and fireproof their landscape...
But nah.
The city environmentals would get upset.
I’m not a big fan of PG&E, but I agree with your take on it.
The state screwed things up, and now seeks to hold PG&E responsible. The state’s leadership never takes blame for what they do or don’t do.
Urban liberals telling rural folks what to do. Why am I not surprised.
“One day the super bloated inflated prices of what ya get for a home in CA will be significantly adjusted.”
That’s already happened more than once. The prices came right back and went higher. But yes, real estate has its cycles. I’ve used them for over 40 years.
Maybe you know, but I saw something about PG&E asked the state if they could bury lines in the bad areas but the state said no. True?
“Increased insurance costs could slow the pace of home-price increases “
Sounds about right.
Live in a fire zone, pay the premium.
Market cant carry the costs,,house prices need to come down.
If your looking, wait it out til the coming bust.
Do it anyway and don’t tell them.
Very true. I could straighten out this state in a week. The first directive would be to follow the rule of law, eliminating sanctuary cities, arresting and deporting illegals, develop broken window criminal process like Giuliani in NYC,, shut down the bullet train, begin eliminating regulations, reduce taxes, etc.
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