Southern Californian Home Prices Are Skyrocketing—Protect Your Investment!
Despite the escalating cost of houses in Southern California, more than 23,000 houses and condos sold in August, according to the L.A. Times. That’s a 9.5% spike compared to August 2015 and a 10-year high across all 6 counties, per real estate data firm CoreLogic. No doubt, those buyers are protecting their investment with homeowners insurance. Here’s why.
Southern California Houses Are in Demand
This summer, the L.A. Times reported that the price of southern California houses has gone up every month for at least the past four years. The median price climbed an average of 6.2% from a year earlier, resulting in the following figures:
- $280,000 in San Bernardino
- $335,000 in Riverside
- $495,000 in San Diego
- $523,000 in Ventura
- $531,500 in Los Angeles
- $640,000 in Orange
If you’re wondering how people can afford such prices, you aren’t the only one.
“Many experts predict prices to level off more—in large part because only about 30 percent of California households can reasonably afford to purchase the state’s median-priced home,” the L.A. Times said.
In the meantime, bidding wars are breaking out due to a shortage of homes for sale, job growth, and record-low mortgage rates.
Home builders, who stopped building during the housing bubble, are licking their chops. The National Association of Home Builders’ confidence index, or optimism level, jumped six points in August.
“Still, developers are not constructing homes at historically normal levels—one of the factors experts blame for the shortage of houses for sale and strong price appreciation,” the Times said.
Homeowners Insurance Provides Peace of Mind
When you spend so much hard-earned money on something, you take care of it and try to keep it safe. Remember how you buffed scratches from your motorcycle or parked your first car a mile from the store so people wouldn’t hit it? Think of homeowners insurance the same way. It can’t prevent natural disasters, such as earthquakes, any more than you can stop pebbles from hitting your Harley or someone’s car door from denting your own. But there are a lot of things insurance can do, depending on your policy. For example, homeowners insurance can:
- cover damage from fire, lightning, or hail.
- pay to repair or rebuild your home, including electrical wiring and plumbing
- reimburse you for damaged furniture and electronics.
- pay housing and living expenses if you have to live elsewhere during rebuilding.
You may still be balking at the thought of paying money each month for something that may or may not happen. Financial adviser, author, radio host, and TV personality Dave Ramsey understands.
“We all hate insurance, until we need it,” he said. “We pay and pay on those premiums, and sometimes we feel insurance poor. But some insurance you simply can’t afford to go without. Homeowners insurance is no exception.”
Protect your home—your investment—with homeowners insurance now to avoid bigger problems down the road. Contact Cost-U-Less today for a free homeowners insurance quote. We can help you find a rate that fits your budget, so you don’t feel like you’re taking a hit each month.