(contribution)
Last week, I shared some of the changes that have disrupted the real estate market. Here are some more.
Natural disasters
Natural disasters have always occurred, but their pace and intensity have steadily increased in recent years. For example, when I was growing up in the Ukiah Valley, we didn’t expect wildfires to happen every year. We hope that governments catch up with the need for prescribed burns and ease regulations so that bushfires are not as devastating in the future.
Clearly, the most important impact of wildfires is the loss of life and property. The trauma for those who have experienced these losses cannot be overstated. From a real estate broker’s perspective, these wildfires have reduced the supply of housing. The cost of rebuilding is also increasing, especially with current building codes. That will be expensive and time-consuming at a time when we are already facing a severe housing shortage.
Another big impact of climate change on the housing market is the difficulty of finding affordable insurance. Over the past two years, many people’s premiums have doubled for the same (or less) coverage. As for me, a friend and I own a steel building on South State Street. Last year, our insurance costs tripled his. This is primarily due to the increased threat of fire.
Finally, climate change will affect future building locations and conditions. Years ago, a cleared oak forest might have commanded a higher sales price than it does today. An oak tree that was an asset 10 years ago may now be considered a liability.
geopolitical concerns
Even small Ole Ukiah is influenced by state and national politics. In this case, housing is affected by energy prices, and energy is heavily influenced by politics.
Not only does the production and transportation of construction materials to build a home require large amounts of energy, but it also requires solar panels, insulation, insulated glass windows, and other elements that affect long-term energy use. Housing costs will continue to rise due to government regulations.
cyber security
Cybersecurity isn’t a major disruption to the real estate industry, but hacks of escrow instructions that tell buyers to send their down payment to a new “secure” link are still a problem for those who don’t listen to real estate agents. is. Don’t believe emails that change your funding. Be sure to check the link with someone you know, such as an escrow officer, loan officer, or real estate agent.
e-commerce
Like cybersecurity, e-commerce is not a major disruptor. However, California passed a new law allowing remote notaries. This is great. Many states have already done this successfully, but we have a long way to go to do it here. In the not-too-distant future, if you are in a foreign country, for example, you will be able to have a notary sign the necessary documents without having to look for a consulate or embassy.
3D printing
Perhaps one of the biggest disruptions to construction and real estate in the coming decades will be “printing” homes on site. 3D printers can actually print homes using concrete-based materials and computer-generated home designs.
It will be interesting to see how technology continues to evolve and how our daily lives evolve with it.
If you have any questions about property management or real estate, please contact us at rselzer@selzerrealty.com or call (707) 462-4000. If you have ideas for future columns, please share them with me. If I use it, I’ll send you a $25 gift certificate to Schat’s Bakery.
Dick Selzer is a real estate agent who has been in the industry for over 45 years.