How Climate Change is Shaping Where Homebuyers Are Looking
Are climate risks part of your home search checklist? If not, you might be missing critical information that impacts your long-term investment. The Zillow Consumer Housing Trends Report 2024 shows that a growing number of buyers are considering factors like flooding, wildfires, and extreme temperatures when choosing where to buy. In fact, nearly three-quarters (73%) of buyers said climate risks affected their home search. Let’s dive into how climate change is influencing homebuyers in 2024 and what you should consider when looking for a home. 1. Flood Zones Flooding has become a leading concern for homebuyers, especially with increased rainfall and more frequent storms. According to the report, 43% of buyers said they avoided homes in flood-prone areas. This makes sense given the long-term financial risk of flood damage, high insurance premiums, and potential evacuation concerns. Before putting an offer on a home, check if it’s in a flood zone (or ask your agent about this!). The Federal Emergency Management Agency (FEMA) offers online flood maps that you can use to assess risk. Even if the property isn’t required to have flood insurance, it may still be a wise investment. 2. Wildfire-Prone Areas Wildfires, particularly in the West, are another key factor influencing buyer behavior. The report found that 28% of homebuyers are avoiding homes in areas with high wildfire risk. With wildfires devastating communities and pushing insurance rates higher, it’s no wonder that buyers are steering clear of these regions. If you’re considering buying in an area that has experienced wildfires, make sure the property has fire-resistant materials like flame-retardant roofing and siding. Consider investing in a defensible space around the home, such as wildfire-resistant landscaping. 3. Extreme Temperatures: A Consideration for 1 in 4 Buyers As heatwaves and cold snaps become more common, 26% of homebuyers reported avoiding climates with extreme temperatures. Whether it’s excessive heat in the South or severe winters in the North, buyers are now prioritizing comfort and sustainability in their home search. When evaluating homes, pay close attention to the property’s energy efficiency. Homes with modern insulation, energy-efficient windows, and climate control systems can help you withstand extreme temperatures while keeping utility costs down. 4. Hurricanes and Coastal Concerns Homes in hurricane-prone areas are also seeing a decline in buyer interest. About 25% of homebuyers said they avoided areas where hurricanes are common. With coastal flooding, storm surges, and property damage on the rise, these risks have caused some buyers to rethink their dream of living near the beach. If coastal living is still your goal, make sure to invest in a property with hurricane-resistant features, such as impact windows and reinforced doors. Additionally, check the availability of homeowners insurance and factor that into your total cost of homeownership. How to Factor Climate Risk into Your Home Search If the risk of natural disasters is on your mind as you look for a new home, you’re not alone. Here are some practical ways to consider risks and find a place you love. 1. Research Local Risks Start by understanding the specific climate risks in your chosen area—whether it’s flooding, wildfires, or extreme heat. Tools like FEMA’s flood maps or resources from your local government can give you a good snapshot of potential risks. Knowing this information early can help you feel more confident about your choice. 2. Invest in Climate-Resilient Features Homes that are equipped with features like impact-resistant windows, efficient drainage, and energy-saving designs handle climate-related challenges much better. These upgrades aren’t just “nice-to-haves”—they can make a huge difference in protecting your home, both now and in the future. Plus, these features can significantly reduce the cost of homeowners insurance. 3. Consider Insurance Costs Climate risks like flooding or wildfire exposure can mean higher insurance premiums. It’s a good idea to check quotes early in the process so you have a full picture of the costs involved. This way, you’re financially prepared and won’t face surprises after you’ve moved in. 4. Think Long-Term With climate risks expected to grow, it’s wise to pick a location and property that will be a safe and solid investment for years to come. Your home should be a place of comfort and security, so choosing one that stands the test of time—environmentally and financially—is key. Remember, finding a climate-resilient home doesn’t have to be overwhelming. Take it one step at a time, focus on the factors that matter most to you, and you’ll soon be on track to a safe, comfortable place that you’ll be proud to call home.
Lower Rates, More Options: Fall Opportunities for Buyers
The past few years have been tough for buyers. And if you think back to before the pandemic, you’ll likely remember hearing that spring was always the ideal time to buy a home. After all, that’s when the majority of homeowners list their homes for sale, and more homes on the market means more options for buyers. This fall, however, marketing conditions are aligning in favor of homebuyers in many markets, creating a unique window that hasn’t happened in recent years. Realtor.com even named September 29 - October 5 the best week to buy a home in 2024. "This year buyers who are looking for that optimum mix of ample options and the potential to save on list price are going to find some of the best market dynamics in years during the first week of October," said Danielle Hale, chief economist, Realtor.com®. So, what makes this season stand out? Let's break down the data below. #1—Lower Mortgage Rates After months of steady climbs, mortgage rates have recently dipped to their lowest levels since February 2023, falling to 5.875% on September 13. This decline offers buyers a chance to lock in more favorable rates and save substantially on their monthly payments. For instance, the monthly payment on a typical home purchase has decreased by over $100 since peaking in May, according to Zillow. But here’s the catch: mortgage rates are unpredictable. While they’re lower now, they could rise again without warning. Acting now could mean the difference between getting a great deal and missing out. #2—Peak Inventory Levels If you’ve been holding out for more options, your patience has paid off. In August, the number of homes for sale increased by 22.1% compared to the same time last year. And, Realtor.com reports that the first week of October will likely feature 37% more active listings than at the start of the year, offering the widest selection for buyers. "Unlike the past few years, we are seeing ample for-sale inventory which could soak up any late-season demand in many markets, making the fall a great time to buy even if falling mortgage rates amp up more demand than is typical," said Hale. More inventory means more choices — and more opportunities to find the perfect home. It also means less pressure to make a snap decision, allowing you the time to thoroughly consider your options without worrying about losing out to another buyer. In the Metro Denver, housing inventory trends are greater than national trends. In August, we saw a 56% increase in inventory. This means buyers have more options. #3—Less Competition Means More Negotiating Power Spring and summer are traditionally hot buying seasons, with a typical cooling in fall and winter. Buyer demand is expected to drop by nearly 30% compared to the spring peak. This reduction in competition could give you a leg up in negotiations, whether that means offering below the asking price or asking the seller to cover some of your closing costs. #4—Price Reductions are More Common In a market with more inventory and less competition, sellers are often more motivated to make deals happen. In August, 25.9% of listings experienced price cuts nationwide, compared to 23.4% a year ago. If you’ve been frustrated by inflated prices, you might find more opportunities to negotiate a lower price or snag a deal on a home that has been sitting on the market. In addition, Redfin reports that the number of homes sold above their list price has also dropped, from 33% last year to just 27.9% in the four weeks ending September 8. In practical terms, this means that sellers are more willing to negotiate, giving you the opportunity to buy a home for less than you might have expected. Seasonal Trends for Homebuyers While fall is typically seen as a slower season for real estate, it can actually be a strategic time to buy. Many sellers want to close deals before the holiday season, making them more motivated to negotiate. That’s part of the reason why Realtor.com identified the week of September 29 – October 5 as the best week to buy a home this year (along with the reasons above!). If you’re thinking about buying a home, waiting until spring could mean higher rates, fewer options, and stiffer competition. This fall is offering a rare combination of lower mortgage rates, more inventory, reduced competition, and increased negotiating power. If you’re interested in learning more about your options, reach out here for a discovery call: 303-332-4747. Email: chris@chrisplant.com or Calendly).
The Hidden Time Cost of Selling Your Home
For most homeowners, selling a home feels less like a straightforward transaction and more like taking on a second job. A job that doesn’t just demand your money but also your most precious resource: time. In fact, according to recent data, selling a home can consume over a third of your waking hours, turning your life upside down. So, if you’re wondering how to sell a home without sacrificing your personal time (or sanity), keep reading. The "Home Move Tax" We all know time is valuable. Between work, family, and personal commitments, there just aren't enough hours in the day. Opendoor surveyed 1,000 recent home buyers and sellers to understand the true cost of time—of “Home Move Tax”—lost during the traditional real estate process. Here's what they found: 71% of Americans say selling a home feels like a second job. This isn't surprising when you consider everything involved, from cleaning and staging to repairs and showings. Employed buyers and sellers are losing PTO and work time. The report estimates that Americans lose over $430 million in missed work time just preparing their homes to sell. Quiet moving is on the rise. 13% of respondents admitted to taking time off work, without their employer knowing, to deal with moving tasks. Selling a home can also take a toll on your well-being, with 85% of sellers reporting they lost sleep worrying about the sale. Here’s what kept them up at night: Offer falling through: 41% Saying “bye” to my home: 37% Offer acceptance: 36% Home prep for listing: 36% Leaving memories behind: 32% Managing repairs: 32% How to Save Time (and Stress) Every moment you spend on the home-selling process is a moment you could be spending elsewhere—on your career, with your family, or just taking a breather in a world that already feels too fast-paced. Recognizing the hidden time costs of selling your home allows you to make more informed decisions. And that’s why working with the right real estate professional is so important. Think of them as your project manager, advocate, and guide rolled into one. They handle the heavy lifting—from setting a competitive price and staging your home to coordinating showings, managing negotiations, and navigating the mountain of paperwork. But beyond these tangible tasks, real estate professionals offer something even more valuable: peace of mind. By tapping into local market knowledge, extensive networks, and experience, they can streamline the entire process, helping you avoid common pitfalls that consume time and energy. This means fewer sleepless nights worrying about the next step, and more time for what matters.
