Today's Headlines - Realty Times
Posted On Wednesday, 17 April 2024 13:55

Nationwide, one-third of homeowners who lost insurance have moved or plan to move, but nearly the same share are staying in their home with little or no coverage

Nearly three-quarters (70.3%) of Florida homeowners and over half (51%) of California homeowners say they or the area they live in has been affected by rising home insurance costs or changes in coverage (e.g., their insurer dropped them) in the past year. That compares with less than half (44.6%) of homeowners nationwide, according to a new report from Redfin (, the technology-powered real estate brokerage.

This report is based on a Redfin-commissioned survey by Qualtrics in February 2024. The nationally representative survey was fielded to 2,995 U.S. homeowners and renters.

Insurance is top of mind for homeowners in Florida and California because those states are the epicenters of the insurance housing crisis. Many homeowners have seen their premiums skyrocket, and some have lost coverage altogether because intensifying natural disaster risk has prompted many insurers to stop doing business in Florida and California. Seven of California’s biggest property insurers have recently opted to limit new policies in the Golden State amid increasing wildfire risk. And in the Sunshine State, 11 insurers have liquidated amid growing flood and storm risk.

Mounting insurance costs and natural disasters are prompting some people to relocate. In Florida, 11.9% of survey respondents who plan to move in the next year cited rising insurance costs as a reason—roughly twice the national share of 6.2%. And in California, 13.1% of people who intend to relocate in the coming year cited concern for natural disasters or climate risks as a reason, compared with 8.8% of respondents nationwide. But while some people are leaving disaster-prone areas, there are still more people moving in than out, a separate Redfin analysis found.

“Homeowners living in areas where insurance premiums are surging are at risk of seeing their properties gain less value than homeowners in areas with stable premiums—and in some cases, they may even lose money,” said Redfin Chief Economist Daryl Fairweather. “Homes with low disaster risk and low insurance costs will likely become increasingly popular, and thus more valuable, as the dangers of climate change intensify.”

Condo prices in some parts of Florida have already started to fall amid an increase in insurance costs and HOA fees.

12% of Florida Homeowners Who Have Faced Insurance Changes Were Dropped By Their Insurer

This section focuses on the 1,198 U.S. homeowner respondents who said they or their area has or may have been impacted by rising home insurance costs or changes in coverage in the past year. Redfin asked these homeowners specifically which insurance insurance-related changes they’ve seen and are concerned about.

Roughly one in eight Florida respondents (12%) and one in nine California respondents (10.7%) said their insurance company stopped offering coverage for their home, compared with 8.3% of respondents overall.

Other homeowners are worried they will be dropped by their insurer in the future: Over one-quarter (27.7%) of respondents in Florida said they are or have been concerned their insurer may stop offering coverage for their home, compared with 13.5% of respondents in California and 8.9% of respondents as a whole.

Most respondents have seen a rise in insurance costs: Overall, nearly three-quarters (71.7%) said their policy premium increased, with a slightly higher share in Florida (76%) and a slightly lower share in California (62.9%).

The average annual U.S. home insurance rate is expected to rise 6% this year to $2,522 after surging 19.8% between 2021 and 2023, according to Insurify. In Florida, the average annual rate is $10,996—higher than any other state.

1 in 3 Homeowners Who Lost Insurance Coverage Has Moved or Plans To Move

Roughly 100 homeowners who participated in the survey indicated that their insurance company stopped offering coverage for their home. One-third (33.2%) of those respondents moved or plans to move to a new area where coverage is available. But nearly the same share (30%) are staying in their home with little or no coverage.

Almost half (46%) of respondents who lost insurance coverage said they’ve found a new insurer to cover their home. A similar share (44.5%) said they pay a significantly higher premium for coverage than before.

Oftentimes when homeowners lose insurance coverage through a private insurer, they’re forced to buy into a more expensive state-created plan—such as California’s FAIR Plan or Florida’s Citizens Property Insurance Corp. But in many cases, it’s unclear whether those programs have enough money to cover losses; a Bloomberg analysis found that 36 states have residual insurance plans, but 21 of those don’t explicitly spell out how they’d pay deficits that exceed their assets.

Only One-Third of Homeowners Know Which Natural Disasters Their Insurance Covers

Roughly one-third of U.S. homeowners (34%) know which natural disasters their insurance for their home covers. An even smaller share—27.2%—know which natural disasters their insurance covers and how much damage is covered under their policy.

With climate disasters on the rise, homeowners should revisit their existing insurance policies so they know exactly what and how much is covered, Fairweather said. In some cases, they may want to purchase an additional policy covering a specific disaster, like fire or flood.

Over One-Third of Real Estate Agents Have Seen an Increase in Insurance-Related Issues

More than one-third of real estate agents (34.4%) have experienced an increase in issues related to home insurance during transactions over the past year.

This is according to a separate Redfin-commissioned survey of 500 real estate agents from a wide spectrum of U.S. brokerages, conducted by Qualtrics in December 2023.

The share was significantly higher in Florida and California. In Florida, nearly three-quarters (73%) of agents have seen an uptick in insurance issues in the last year, and in California, the share was 64%.

To view the full report, including charts, please visit:

Posted On Wednesday, 17 April 2024 11:39 Written by
Posted On Wednesday, 17 April 2024 09:52
Posted On Tuesday, 16 April 2024 12:19
Posted On Tuesday, 16 April 2024 11:27
Posted On Tuesday, 16 April 2024 10:42
Posted On Tuesday, 16 April 2024 09:03 Written by

Freddie Mac (OTCQB: FMCC) Multifamily today announced a series of policy and process enhancements that further strengthen underwriting due diligence, bolster fraud detection and deterrence, and mitigate other risks. Effective April 18, the changes include enhanced property inspection requirements and additional due diligence, among other measures.

"Freddie Mac remains focused on risk management and works to enhance our processes to better detect and deter fraud and misrepresentation,” said Ian Ouwerkerk, senior vice president of Multifamily Underwriting & Credit. “We take these issues seriously, and these enhancements are just the latest step in our effort to manage risk and improve our execution."

The enhancements will appear in Freddie Mac’s Multifamily Seller/Servicer Guide (“Guide”) and take effect on April 18. They specifically include the following:

  • Property inspections will require an increased number of unit inspections and higher lease audit sample sizes. Additional documentation will be required for lease audits to confirm actual tenant rental payments.
  • Stronger “Know Your Customer” requirements, including enhanced due diligence for first-time borrowers and borrowers with limited multifamily experience, additional liquidity verification and verification of real estate owned by the borrower.
  • Updated process to limit Freddie Mac Multifamily business with certain title companies when applicable.
  • Additional appraisal review and appraiser independence requirements to safeguard the independence, objectivity and impartiality of appraisers.

The April updates reflect another step in Freddie Mac’s ongoing effort to enhance its processes. In November 2023, the company announced new measures to clarify multifamily documentation chain of custody requirements as loan due diligence moves from borrower to lender.

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More:

Posted On Tuesday, 16 April 2024 06:04 Written by

The buzzwords of today’s digital age are ‘AI’ and ‘Artificial Intelligence.’

These excite some and strike fear into others. Yet whatever your position, this Hard Trend is undeniable and will shape the future of your business or organization in some way.

Applications like ChatGPT, deep data algorithms, and others are changing the face of work and how we approach business practices at an unprecedented speed. So what does that mean for the roles we have at work? Better yet, how do employers acquire talent with the skills necessary to keep operations progressing into the future? And finally, how do employees adapt when many of the tasks they are used to completing are being transformed by AI?

AI Is Moving Fast

Organizations and employees alike find comfort in their tried-and-true operations, but the business world is never constant — change is the only constant. According to a recent report completed by Goldman Sachs, 60% of the jobs available today did not exist in the 1940s. With the accelerated rate at which AI is transforming our current roles, today’s positions will be exponentially different in the next 5, 10, 15, and 20 years.

We do not have the luxury of sitting back and becoming complacent in our current roles, no matter what level they are at. Instead, we need to take an Anticipatory approach to work, looking at the future of AI technology in the workplace and proactively arming our workforce with essential knowledge and skills.

Do Not Let AI Lead You — Be the Leader

Because AI is progressing at such an exponential rate and will continue to do so, many organizations are still finding it difficult to obtain and retain top talent. Likewise, workers are finding it difficult to assimilate to their new roles in a technology-driven workforce.

Adaptation to AI is certainly on everyone’s minds; however, there is a slight problem with the concept of adaptation. It is a complacent and reactive approach to this digital disruption and will continue to be. Essentially, using agility to face AI will continue to put you in a place of professional anxiety.

With the uptick in AI applications, many companies have allowed AI to come to them. As a result, they wind up disrupted and feel that AI is at fault. Let me be frank: AI applications are not sentient beings. They merely exist and can or cannot be put into action.

It is up to you to apply AI within your business or organization. But applying AI is only half the battle. There is the human factor of the equation, in which your employees are affected by those AI applications. What ends up happening is business leaders either replace employees with those who have the technical skills necessary to work with AI or they force their current employees to learn these skills at unrealistic speeds.

But in reality, no matter the option you select, you are already behind at this point.

High-Level Skills and Technical Knowledge Are a Powerful Combination

Implementing AI applications in Anticipatory ways is definitely part of the equation, but as a leader, you are dealing with humans at your organization. Humans need to be taught how to work with these AI applications.

Teaching the essential skills at the heart of AI encompasses more than just technical know-how of coding languages, data sets, and machine learning principles. These are valuable skills, but employers need to teach how to leverage the higher levels of cognitive domain that human beings bring to the table.

In 1954, psychologist Benjamin Bloom developed a framework for categorizing educational goals: Bloom’s Taxonomy of Educational Objectives. The categories are:

•  Knowledge

•  Comprehension

•  Application

•  Analysis

•  Synthesis

•  Evaluation

Knowledge and comprehension are the lower levels, while application, analysis, synthesis, and evaluation are higher. By creating a space for employees to foster these higher levels, you not only encourage them to develop confidence in their use of these new skills, but employees will also have the advantage of examining data and filtering the most crucial information in a way that AI cannot. 

Bringing It All Together

Creative problem-solving, decision-making, and the ability to communicate effectively are key skills that AI cannot touch. A mastery of these skills gives you, your team, and your business or organization the competitive advantage in your industry!

As you can see, an Anticipatory approach to AI in your industry and others is not just about working AI into your system. Human employees will always be a valuable asset to any business or organization, but much like AI applications, they too need to evolve and “upgrade.”

Combine these high-level skills with modernized knowledge in your training, make it interactive, and give current employees downtime to explore and learn these competencies fully. Meshing teaching critical-thinking skills with learning new technology is the way of the future.

To learn more about how you can take advantage of AI and accelerated digital transformation while retaining high-value employees, join my Anticipatory Leader Membership. Right now, you have a choice to make. You can react to problems and disruptions to your life, your career, and your organization after they happen, or you can tap into this unique learning system that will empower you with the ability to accurately foresee disruptions and game-changing opportunities. Learn more:

Posted On Tuesday, 16 April 2024 00:00 Written by
Posted On Monday, 15 April 2024 14:20
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