Newz: Waivers Increasing, The New URAR: Markets vs. Neighborhoods , Climate Change and Home Values
February 7, 2025
What’s in This Newsletter (In Order, Scroll Down)
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LIA AD: Should I consider this an actual claim?
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How Climate Change Could Upend the American Dream – Declining Home Values
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A Sporty Paradise in Your Own Backyard: 5 Homes With Awe-Inspiring Athletic Amenities – From Hockey Rinks to Boxing Rings
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Trump’s War on DEI: Immediate Effects for Appraisers
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The Full Measure: January 2025 Housing Market Insights for Appraisers
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Waivers Increasing and Trends Over Time
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There Goes the Neighborhood…The New URAR: Markets vs. Neighborhoods
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Mortgage applications increased 2.2 percent from one week earlier.
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How Climate Change Could Upend the American Dream
Declining Home Values
Excerpts: Americans have long accumulated wealth by owning their homes, but a new study predicts that spiking insurance rates and climate disasters now herald an era of widespread losses.
One little-discussed result is that soaring home prices in the United States may have peaked in the places most at risk, leaving the nation on the precipice of a generational decline. That’s the finding of a new analysis by the First Street, a research firm that studies climate threats to housing and provides some of the best climate adaptation data available, both freely and commercially. The analysis predicts an extraordinary reversal in housing fortunes for Americans — nearly $1.5 trillion in asset losses over the next 30 years.
Climate change is upending the basic assumption that Americans can continue to build wealth and financial security by owning their own home. In a sense, it is upending the American dream.
To read more, Click Here
My comments: I hear about, and see, more listings that are including climate risk levels. I have not seen discussions on the future of home values in risky areas. I live 10 miles from a very risky area – Oakland CA hills. I am too far away to be at risk. My insurance company, State Farm, is requesting a 22% increase in homeowner’s insurance. Insurers have been not renewing individual homes for various reasons. Will I have to pay the same rates as the Oakland hills, which is very high risk and had a major fire in 2001?
I quit doing appraisals in the Oakland hills about 15 years ago due to high personal risk if a fire starts while I am there. Narrow, winding, one lane roads. Very difficult to escape from fire. Most of my city has risks from sea level rise and some parts have flooding risks, but my home is not included fortunately.
How will appraisers make adjustments for risky homes?
