Incoming Property Insurance Rates Will Shock EVERYONE

Incoming Property Insurance Rates Will Shock EVERYONE

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Sources:
1. https://www.cnbc.com/2023/02/21/stock-markets-the-economy-might-be-fine-with-inflation-more-than-2percent.html
2. https://www.wfla.com/news/florida/florida-property-insurance-rates-expected-to-jump-40-to-50-in-june/
3. https://www.clickorlando.com/news/2023/02/17/florida-property-insurance-company-insolvent-after-losses-caused-by-hurricane-ian/
4. https://www.channel3000.com/news/money/americans-are-saving-the-least-they-have-since-2005-heres-why-that-matters/collection_3fafbd90-dab6-52e5-a8d6-b9181bd8232a.html#1
5. https://www.nar.realtor/magazine/real-estate-news/16-million-homes-vacant-in-us
6. https://www.alleghenyfront.org/why-big-industry-is-paying-small-farmers-to-cut-pollution-in-the-ohio-river/

Homeowners and Property Investors are entering a world of uncertainty as mortgage rates rise, utility bills rise and now property insurance rates are likely going to skyrocket beyond belief due to natural disasters that are occurring around the country. These disasters will cost insurance companies billions and billions of dollars and these insurance companies will do one of two things: (1) they will absorb the losses or (2) they will push off their losses across their other policies to offset their new expenses.

I believe that they will do option two and spread their losses nationally and we will see higher rates continue to get higher pushing property affordability to a level in which most people simply will not be able to own their own home.

If it becomes cheaper to rent than it is to own, people will likely be forced to rent. This will likely cause a situation where there is much more available supply for sale than available buyers to buy these properties leading to a record decrease in property prices.

#economy #realestate #thisisjohnwilliams