Have you noticed that your insurance premiums are shockingly high for your home, rent, and/or car? I became quite aware after receiving renewal pricing for some of our investment properties in North Carolina. A few renewals nearly doubled from what they were last year. That's not helpful with the bottom line at all. After talking to more people, it's clear that like inflation this is a nationwide problem. In fact, on the Newsnation website they reference just how significant the insurance pricing is to the nation's economy, "A recent Bloomberg Intelligence analysis found that including homeowners insurance in the inflation data could have added about 0.8% to last year’s CPI increase of 3.4%."

 

When you dig deeper, the reasons for the more expensive premiums are because companies need to pass on their rising costs to us, which include the following:

  1. Extreme weather
  2. Costlier repairs
  3. More accidents with significant damage
  4. Higher reinsurance costs for insurance companies.

Mortgage rates also inched up in the last few weeks after inflation numbers were released, forcing the market to question if the Federal Reserve will lower rates at all in 2024. One thing to consider is opting for an interest-only loan right now if you believe in the next few years rates will come down significantly and then you can refinance. You don't pay much equity in the first few years, so it's a strategy worth exploring.

 

In the past few weeks, I talked about the appraisal process and how appraisers are having a hard time keeping up with the escalating prices we are experiencing. I am happy to report that through a thorough analysis I presented to the bank on my client's behalf, I was able to convince an appraiser to increase his appraisal number to our asking price. Phew! This saved them from bringing an extra $40K to the closing table. A victory for all, and I'm so happy I was able to do this. 

 

I expect a good number of listings to hit the market in May. Great news for buyers who are still hungry for a new home. Houses are still being absorbed quickly so we need more choices for those looking to move! Have a great week and reach out with any real estate questions!

 

 

 

 

11 Roanoke Road, Wellesley

$2,895,000

Click here to see 11 Roanoke Road

 

Launcher Way, Wayland

$859,000

Click here to see Launcher Way

 

 

 

I'm always available and more than happy to provide an analysis for you! Email me at teri@mgsgrouprealestate.com or call at 617-306-3642 to schedule a meeting.

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