Every metric of homeownership costs is going the wrong way

I want to discuss the local market.

Because I’ve received at least 2-3 calls per week for the last few months mentioning that past clients are seeing more For Sale signs and that homes are sitting longer.

And that’s the difference between eyes on the ground real estate and national pundit real estate.

What are we really seeing?

Inventory is most definitely on the rise.

Time on market has risen slowly, across all price points, since August.

The number of homes making price adjustments has also risen (which means sellers, perhaps at the advice of their agents, are pricing their listing a little too aggressively). Most notably, the homes at the lower end of the pricing spectrum have taken the biggest hit.

And the market has been, essentially, flat. It’s still a Seller’s Market, but it’s softening and buyers aren’t willing to write a blank check any longer.

What’s driving it?

Affordability, of course… which is driven by interest rates, primarily, but also all other housing costs… electricity, gas/oil, cable/internet, insurance, taxes, etc.

For example, according to Attom Data, “The average tax on single-family homes rose 4.1% in 2023 to $4,062, following a 3% increase in 2022. This resulted in an effective nationwide tax rate of 0.87%, up from 0.83% in 2022, marking the first increase since 2017. “ 1

So we’re getting hammered by increases in property taxes.

What about utilities?

In MA, projections for heating costs are to rise 31.0%...

…and they’re projecting that the average home will have a monthly heating bill of $354.20. It goes without saying that we’ve been getting crushed by utility expenses.

How about insurance??

Car insurance is up, pretty significantly, with more increases expected. Insurify.com is expecting car insurance rates to increase 22% in the remainder of 2024 after a 15% increase in the first half of 2024.

Of course the culprit is…?

Wait for it…

Climate Change! (I kid you not)

Of course that has more to do with increased construction in areas susceptible to climate disasters (hurricanes, floods, etc)... but that information is too inconvenient.

And homeowner’s insurance? It’s not any better…

That purple line showing the increase in premiums is not going in the right direction.

And all of this adds up to make homeownership a real struggle, especially for new buyers.

If you don’t like to hear any of this, then you may not like my final message… and it’s that you have the power to show your displeasure on November 5th. It’s the only voice we really have. If you want more of this, vote for the status quo. If you’ve had enough, the decision is clear.?

1“2023 U.S. Property Tax Report”, Accessed 28 OCT 2024, attomdata.com, ATTOM, https://www.attomdata.com/hnr/2023-u-s-property-tax-report/

2Alex Miller, “States Most Impacted by Rising Heating Costs This Winter [2024 Data Study]”, upgradedpoints.com, Upgraded Points, LLC, Last updated 11 SEP 2024, Accessed 28 OCT 2024, https://upgradedpoints.com/news/states-impacted-rising-heating-costs/

3Heather Ayer, “Average Cost of House Utilities: How Does Your Monthly Bill Stack Up?”, angi.com, Angi, Last updated 14 MAY 2024, Accessed 28 OCT 2024, https://www.angi.com/articles/states-highest-lowest-utility-bills.htm

?Cassie Sheets, “New Report: Insurify Projects 22% Increase in Car Insurance Costs After 15% Spike in First Half of 2024”, insurify.com, Insurify Insurance Agency, Last updated 11 AUG 2024, Accessed 28 OCT 2024, https://insurify.com/car-insurance/report/

?Ibid.

?Ryan Kingsley, “Home Insurance Costs, Coverage Worsening In 2024”, nationalmortgageprofessional.com, American Business Media, LLC, Last updated 23 JUL 2024, Accessed 28 OCT 2024, https://nationalmortgageprofessional.com/news/home-insurance-costs-coverage-worsening-2024