Changes are coming and its not good news!
Things are getting bad for potential buyers and sellers and its not just the interest rate.
All Electric: According to the Center for American progress (June 14, 2022) Regulators efforts to promote climate risk mgt. by banks are starting to take place. In order to reduce carbon footprints companies are promoting all electric businesses, buildings, facilities and homes. What if you don't comply? What would this do to buyers and sellers if their property isn't converted to all electric? According to CAP, NY Private equity firms are lending money to property owners and taking a lean out on the property in order to comply to these changes. How will the average consumer with little to no equity afford to convert to all electric? How could one sell to a potential buyer without the conversion to all electric?
Property Tax increases: According to Adam Schuster (June 15, 2022) amendment 1 would guarantee a $2,149 tax increase for the typical Illinois family. A proposed change to the Illinois Constitution would effectively transfer power over taxpayer money to government worker unions. This trend will gradually increase over the next four years. This is being talked about in other parts of the country as well. Will we see this trend nation-wide? How will this effect buyers and sellers?
Insurance Companies Pulling Out: According to the CEO of Redfin, Glenn Kellman, 40 million or about 1/3 of home owners will be at risk of not being able to obtain insurance. From NY to Miami and the gulf coast region, insurance companies are pulling out of risky markets due to climate change, weather patterns, hurricanes etc. Insurance companies claim that the risk is too high in these areas and it is going to be hard for the average consumer to obtain insurance as we move forward. Financing will become much harder.
What are your thoughts as we find new hurdles to jump over as government regulations play more of a role forcing industries to comply?
KG