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Real Estate News
House Arrest
A quick dive on several important topics including national and local housing market trends, inventory levels, homeowners' wealth, insurance industry challenges, and household debt -
National Housing Market
Median listing price down 1% year-over-year, marking the 17th consecutive week of price stagnation or decline
New listings up 8% year-over-year, driven by falling mortgage rates encouraging more sellers to enter the market
Active inventory up 33.2% year-over-year
Homes on market 6 days longer than in 2023
Monterey County Market
Median sales price still up, 5.5% year-over-year despite peaking in June
Active listings at highest level in several years, despite number of new listings peaking in May
Q3 2024: $3MM+ home sales up 31% year-over-year; home sales in these price brackets are at the highest level since the peak of the pandemic boom. Higher-priced homes have been outperforming the general market by a wide margin
September 2024: Price reductions up 30% year-over-year, but still not particularly high compared to long-term norms
Q3 2024: Average sale price 3% under list price
Cash purchases at highest levels since 2012
Additional Insights
Only 25 out of 1,000 U.S. homes changed hands (Jan-Aug 2024), the lowest turnover in at least 30 years
Homeowner's insurance policies being canceled based on satellite imagery
Nine states surpassed pre-pandemic inventory levels by September 2024
Homeowners' Wealth Reaches New Heights
Total homeowner equity hit $35.1 trillion in Q2 2024
Up $1.7 trillion from last quarter
Up $3.1 trillion year-over-year
Equity now represents 73% of all real estate value, up from 46% in 2012
Total home value owned by residents: $48.2 trillion
Up $1.8 trillion from last quarter
More than doubled in a decade
Mortgage debt increased to $13.1 trillion
Average homeowner equity: $267,000
Insurance Industry Challenges
State Farm's Policy Cuts in California
Plans to cut 1 million policies by 2028
Projected policy count to fall below 2 million in three years
Currently insures one in five homes in California
Reasons for cuts:
Increased wildfire risk
Rising construction costs
Paying more in claims than receiving in premiums
Rate Hike Requests
State Farm General seeking significant rate increases:
30% for homeowners
36% for condominium owners
52% for renters
Broader Insurance Issues
13% of California agents had transactions terminated due to insurance issues in 2024 (up from 7% in 2023)
Top 13 U.S. insurers denied 47.5% of claims in 2023 (up from 37.4%)
Average monthly insurance payments up 52% since 2020
Some high-risk areas seeing increases up to 90%
International Buyers and Market Impact
Average spending: $780,300 per property (vs. U.S. median of $392.6K)
18% purchased homes valued over $1 million
Florida remains top destination (20% of international purchases)
Household Debt
Rose 4.3% to $17.8 trillion
Credit cards and HELOCs grew faster (10.8% and 11.8% respectively)
A quick dive on several important topics including national and local housing market trends, inventory levels, homeowners' wealth, insurance industry challenges, and household debt -
National Housing Market
Median listing price down 1% year-over-year, marking the 17th consecutive week of price stagnation or decline
New listings up 8% year-over-year, driven by falling mortgage rates encouraging more sellers to enter the market
Active inventory up 33.2% year-over-year
Homes on market 6 days longer than in 2023
Monterey County Market
Median sales price still up, 5.5% year-over-year despite peaking in June
Active listings at highest level in several years, despite number of new listings peaking in May
Q3 2024: $3MM+ home sales up 31% year-over-year; home sales in these price brackets are at the highest level since the peak of the pandemic boom. Higher-priced homes have been outperforming the general market by a wide margin
September 2024: Price reductions up 30% year-over-year, but still not particularly high compared to long-term norms
Q3 2024: Average sale price 3% under list price
Cash purchases at highest levels since 2012
Additional Insights
Only 25 out of 1,000 U.S. homes changed hands (Jan-Aug 2024), the lowest turnover in at least 30 years
Homeowner's insurance policies being canceled based on satellite imagery
Nine states surpassed pre-pandemic inventory levels by September 2024
Homeowners' Wealth Reaches New Heights
Total homeowner equity hit $35.1 trillion in Q2 2024
Up $1.7 trillion from last quarter
Up $3.1 trillion year-over-year
Equity now represents 73% of all real estate value, up from 46% in 2012
Total home value owned by residents: $48.2 trillion
Up $1.8 trillion from last quarter
More than doubled in a decade
Mortgage debt increased to $13.1 trillion
Average homeowner equity: $267,000
Insurance Industry Challenges
State Farm's Policy Cuts in California
Plans to cut 1 million policies by 2028
Projected policy count to fall below 2 million in three years
Currently insures one in five homes in California
Reasons for cuts:
Increased wildfire risk
Rising construction costs
Paying more in claims than receiving in premiums
Rate Hike Requests
State Farm General seeking significant rate increases:
30% for homeowners
36% for condominium owners
52% for renters
Broader Insurance Issues
13% of California agents had transactions terminated due to insurance issues in 2024 (up from 7% in 2023)
Top 13 U.S. insurers denied 47.5% of claims in 2023 (up from 37.4%)
Average monthly insurance payments up 52% since 2020
Some high-risk areas seeing increases up to 90%
International Buyers and Market Impact
Average spending: $780,300 per property (vs. U.S. median of $392.6K)
18% purchased homes valued over $1 million
Florida remains top destination (20% of international purchases)
Household Debt
Rose 4.3% to $17.8 trillion
Credit cards and HELOCs grew faster (10.8% and 11.8% respectively)
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Jonathan Balog
DRE# 01980970
Broker
M: 831.747.0310
[email protected]
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.