Table of Contents
How to save money on insurance
New York City has some of the most expensive real estate market in the world, and it isn’t improving. Instead, a new study shows that real estate prices are on the rise again, and not in a good way.
In a survey of 5,000 New Yorkers, the real estate research firm Jones Lang LaSalle found that the average home prices in the city increased by 9% in the third quarter of 2018. That’s a jump of 9% in just one year, and it’s not even the start of the year yet.
To make matters worse, the average price of a home in the city hit an all-time high in the third quarter, as home prices across the city rose by an average of 17% from the second quarter to the third. That’s an increase of more than 60% in just one year.
In other words, the city is on the rise again.
This doesn’t bode well for the housing market, which has been in a long, steady decline. This time, it’s not even the residential market that’s on the rise. There’s also been a lot of other factors at play. For example, the third quarter was also the first time in nearly three decades that real estate prices have not have declined.
Here is what you need to know about saving money on insurance.
How to save money on insurance
The average home in New York City will sell for up to $1.39 million in 2020, according to a study by the brokerage firm Jones Lang LaSalle. That’s a jump of 9% from last year’s numbers and just over $1 million in total sales.
This is in addition to a jump in home values that alone accounts for almost half of all the increase in home values.
The country as a whole also saw an increase of 9% in home values in the third quarter, as compared to the second. That’s a significant jump, but not nearly as significant as the increase in home prices that occurs during a year.
To put that in perspective, the average home in the US will go on sale for between $79,000 and $85,000 in 2020, according to a study by the brokerage firm Jones Lang LaSalle. That’s a decline of 3% from last year’s figures, and a drop of $1.2 million from the year before that.
Why insurance is so expensive
First, let’s talk about why insurance is so expensive. The main reason is that insurance companies have to spend a lot of money on research and development to come up with all the different technologies, algorithms, and protocols that make up an insurance product. And then there’s the additional expense of managing all the claims that may or may not get payed based on the product’s performance.
People who buy insurance may also be concerned about the price tag because it’s a high-cost product that offers a lot of benefits for a small investment, but doesn’t always pay off when you try to take it to court.
The New York real estate market
Next, let’s look at the real estate market in New York City. While the overall national market is almost identical to it’s counterparts in other regions of the country, the price of homes in New York City is usually higher than the national average.
That’s probably because the city has a much more expensive real estate market overall.
In fact, compared to other cities in the US, home values in New York City are about 2.5 times as high as those in other major cities in the country.
The cost of insurance in the city
Finally, property values in the city tend to increase in tandem with the price of insurance. That is, if you go up one star in the Yelp ratings, the price of your home will increase by one-fifth.
To put this in perspective, the average of the top five listings on the New York City market was $2.1 million in the third quarter of 2018, according to Re/MAX consultant realign. That’s a jump of $1 million in just a year.
That’s a lot of extra cash that may or may not get payed off in court.
The Bottom Line
Saving money on insurance can go a long way in improving the finances of your home or business. In fact, saving money on insurance can make the difference between staying profitable and losing your job.
So, whether you’re a first-time homebuyer or you’ve been in the real estate business for years, you need to take this survey. You’ll find out what your realistic monthly budget is for insurance and you’ll make a lot of informed decisions based on those figures.
And remember, if you want to save money on insurance, you can always contact a local insurance broker and pick out a cheaper policy.