Market Update September 2023 (Home Insurance, Appraisals, and Days on Market)
Understanding the Homeowners Insurance Dilemma
If your home is currently insured by Citizens Insurance, be aware that they will be sending out a letter in the coming month, during October. It's imperative that you take proactive steps. Citizens Insurance Companies are urging homeowners to explore alternative options with private insurance providers, as they have reached the limit of their allowed insurance policies. Some of these private companies are raising rates by up to 150%.
Don't wait until you receive the letter--they may terminate your coverage. Investigate your alternatives before it becomes too late.
The Appraisal Challenge
Moving on to our second topic, appraisals have become a matter of concern in the current real estate climate. Recent appraisals are consistently falling short of the agreed-upon purchase price, sometimes varying between $5,000 to over $25,000 below expectations. This trend has left both buyers and sellers grappling with uncertainties, as lending institutions tighten their restrictions.
Understanding true market value, the process and regulations around appraisals, and how to navigate these challenges is crucial for anyone engaged in the real estate market. As appraisals impact the financing and final transaction price, it's essential to stay informed about market conditions and lending institution practices to make informed decisions. We'll provide the information yu need to make your own decision. We want you to feel 100% confidence in whatever you choose!
Days on Market: A Changing Landscape
Lastly, let's delve into the evolving concept of "days on market." While the current inventory remains relatively low, hovering around a two to two-and-a-half-month supply, the days on market are on the rise. In contrast to the rapid 17-day turnovers witnessed last year, some areas are now experiencing listings staying on the market for 30, 35, or even 45 days.
However, don't mistake this shift as a sign of a stagnant market. Homes are still selling, and multiple offers continue to emerge. In some cases, buyers are successfully negotiating substantial discounts, ranging from $20,000 to $40,000 off the asking price. This suggests that despite the changes, it remains an opportune moment for those looking to buy.
In the dynamic world of real estate, staying well-informed and seeking professional guidance is of paramount importance. The issues of homeowners insurance, appraisals, and days on market underscore the complexities of today's market. To make the most informed decisions, it's crucial to consult with experienced professionals who can provide the necessary insights and assistance.
If you have any questions or need guidance on any of these matters, remember that you need a professional to help you navigate the market effectively. Please don't hesitate to reach out to us at 904-219-7539 or shoot us an email at chadandsandy.com. For further information, visit our website at www.chadandsandy.com.
Stay informed, stay ahead, and have a great day!