Soaring insurance rate is slowing down the real estate market
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The insurance crisis is crippling the housing market right now.Experts say potential homebuyers are struggling to find their dream home because of the soaring insurance rates.In fact, according to the New Orleans Metro Association of Realtors, home sales are down 15 percent compared to this time last year.As a result, some are settling with cheaper homes and others are just giving up altogether.Kristi Burns and her family searched for 12 stressful months. They were looking in Uptown, but had to adjust for high insurance and settled for a home in Lakeview. They also had to settle for different home amenities. “We had to come down quite a bit and look in certain areas, in certain types of homes and maybe give up a few of the things that we wanted. There were a few times we were getting frustrated. We had to adjust our budget,” Burns said. All this after they already gave up looking for a home in Florida, because of soaring insurance costs there.Kristi is one of many homebuyers struggling to buy a home within their budget amid the insurance crises.According to the New Orleans Metro Association of Realtors, monthly sales are down substantially compared to last year. 895 homes closed in October 2023, compared to 1053 in October 2022. Cindy Greer with Keller Williams says don’t give up on being a homeowner. She says to be open-minded, flexible, and ready to make some changes to what your “ideal home” may look like. “You may not be able to buy that perfect house with all the bells and whistles that you want because you have to account for insurance. It’s all relative. The bigger, more expensive the house, the bigger, more expensive your insurance is going to be,” Greer said. Burns says the insurance for her home in Lakeview is a few thousand dollars cheaper than the home she wanted in uptown. But she worries if insurance continues to go up, it will price many families out of their American dream. “We’ve never taken this long to buy a home before, but this time we had to because we had to make so many adjustments along the way. We also took into account that the insurance could go up in future years,” Burns said.
The insurance crisis is crippling the housing market right now.
Experts say potential homebuyers are struggling to find their dream home because of the soaring insurance rates.
In fact, according to the New Orleans Metro Association of Realtors, home sales are down 15 percent compared to this time last year.
As a result, some are settling with cheaper homes and others are just giving up altogether.
Kristi Burns and her family searched for 12 stressful months. They were looking in Uptown, but had to adjust for high insurance and settled for a home in Lakeview. They also had to settle for different home amenities.
“We had to come down quite a bit and look in certain areas, in certain types of homes and maybe give up a few of the things that we wanted. There were a few times we were getting frustrated. We had to adjust our budget,” Burns said.
All this after they already gave up looking for a home in Florida, because of soaring insurance costs there.
Kristi is one of many homebuyers struggling to buy a home within their budget amid the insurance crises.
According to the New Orleans Metro Association of Realtors, monthly sales are down substantially compared to last year.
895 homes closed in October 2023, compared to 1053 in October 2022.
Cindy Greer with Keller Williams says don’t give up on being a homeowner.
She says to be open-minded, flexible, and ready to make some changes to what your “ideal home” may look like.
“You may not be able to buy that perfect house with all the bells and whistles that you want because you have to account for insurance. It’s all relative. The bigger, more expensive the house, the bigger, more expensive your insurance is going to be,” Greer said.
Burns says the insurance for her home in Lakeview is a few thousand dollars cheaper than the home she wanted in uptown. But she worries if insurance continues to go up, it will price many families out of their American dream.
“We’ve never taken this long to buy a home before, but this time we had to because we had to make so many adjustments along the way. We also took into account that the insurance could go up in future years,” Burns said.
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