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Author: Seth Pfaehler

Home Insurance Costs Are Rising: What Buyers Should Plan For

Buying a home is one of the biggest purchases you’ll ever make. And homeowner’s insurance is what protects that investment. Think of it as your safety net. NerdWallet explains it:

  • Covers Repairs and Rebuilding Costs: If your home is damaged by fire, storms, or other covered events, it helps pay for repairs and possibly even a full rebuild, if that’s deemed necessary.
  • Protects Your Belongings: It can also cover personal items like furniture, electronics, jewelry, and clothing if they’re stolen or damaged.
  • Provides Liability Coverage: And, if someone gets injured on your property, your policy can help cover medical bills or legal expenses.

But that peace of mind does come with a cost, and lately those costs have been rising.

Why Home Insurance Premiums Are Going Up

There are a number of factors causing insurance premiums to rise today. But, in the simplest sense, here’s what’s driving prices up according to the Insurance Research Council (IRC).

Severe weather events and natural disasters are happening increasingly often, leading to more claims. At the same time, homebuilding materials and labor are more expensive. So, when it comes time to work on those claims, insurers have to manage higher costs to repair or rebuild the affected homes.

That combination adds up to higher premiums. You can see how it’s climbed recently in the graph below. Each bar marks the percentage increase in insurance costs for that calendar year.

a graph of a graph showing the cost of homeowner insuranceThe good news is, the annual pace of the increase may be starting to ease according to ResiClub and Cotality. By their count:

  • In 2023 and 2024, insurance costs went up 14% a year.
  • In 2025, they rose about 10%.
  • And in 2026 and 2027, it’s expected to go up about 8% each year.

That’s still an increase, but at least the pace is slowing down. And here’s another silver lining.

While insurance costs are rising, mortgage rates are falling. And that can help offset some of this expense. As Michael Gaines, Senior VP of Capital Markets, Cardinal Financial, explains:

“Rising taxes and insurance do create pressure, but they don’t erase the benefits of a lower rate . . . A small rate improvement, paired with the right loan program and smart planning, can still make homeownership possible . . . It’s less about one factor canceling another out, and more about helping buyers layer the right solutions together.”

Costs Are Going To Be Different Depending on Where You Buy

So how much do you need to budget for this? It depends on the price point and location of house, the coverage you need, and more. And just like with everything else in real estate, costs vary by area.

You can get a rough idea of your state’s typical premiums in the map below:

So, What Can You Do About It?

Generally speaking, your first insurance payment will be wrapped into your closing costs. But after that, it’ll become a recurring expense. That’s why knowing these premiums are rising is so important. It helps you factor that into your budget, so you go in with a full picture of what you can comfortably afford.

If you’re crunching the numbers and trying to find other ways to save, here are a few tips from Insurify and NerdWallet that can help you get the best insurance price possible:

  • Shop Around – Compare quotes from multiple companies.
  • Bundle Policies – Combine home and auto for discounts.
  • Ask About Discounts – Don’t miss out on savings you may qualify for.
  • Highlight Upgrades – Features like a new roof or storm windows can cut costs.
  • Improve Your Credit – A stronger credit score can mean better premiums.

Bottom Line

If you’re thinking about buying a home, don’t forget to plan ahead for your homeowner’s insurance.

While costs are rising, knowing what to expect and how to shop around can make a big difference as you’re budgeting for your purchase. Because this isn’t coverage you’ll want to skimp on. It’s your best protection for what’s likely your biggest investment.

Why So Many Homeowners Are Downsizing Right Now

For a growing number of homeowners, retirement isn’t some distant idea anymore. It’s starting to feel very real.

According to Realtor.com and the Census, nearly 12,000 people will turn 65 every day for the next two years. And the latest data shows as many as 15% of those older Americans are planning to retire in 2026. And another 23% will do the same in 2027.

If you’re considering retiring soon too, here’s what you should be thinking about.

Why Downsize?

Now’s the perfect time to reflect on what you want your life to look like in retirement. Because even though your finances will be going through a big change, you don’t necessarily want to feel like you’re living with less.

But odds are, what you do want is for life to feel easier.

Easier to enjoy.

Easier to manage.

Easier to maintain day-to-day.

The Top Reasons People Over 60 Move

You can see these benefits show up in the data when you look at why people over 60 are moving. The National Association of Realtors (NAR) finds the top 4 reasons aren’t about timing the market or chasing top dollar. They’re about lifestyle:

  • Being closer to children, grandchildren, or long-time friends so it’s easier to spend more time with the people who matter most
  • Wanting a smaller, more functional home with fewer stairs and easier upkeep
  • Retiring and no longer needing to live near the office, so it’s easier to move wherever you want
  • Opting for something smaller to reduce monthly expenses tied to utilities, insurance, and maintenance

 a graph of age groups

No matter the reason, the theme is the same: downsizing isn’t about giving something up. It’s about gaining control and choosing simplicity. And it brings peace of mind to know your home fits the years ahead, not the years behind.

And the best part? It’s more financially feasible now than many homeowners would expect.

The #1 Thing Helping So Many Homeowners Downsize

Here’s the part that makes it possible. Thanks to how much home values have grown over the years, many longtime homeowners are realizing they’re in a stronger position than they thought to make that move.

According to Cotality, the average homeowner today has about $299,000 in home equity. And for older Americans, that number is often even higher – simply because they’ve lived in their homes longer.

When you stay in one place for years (or even decades), two things happen at the same time:

  • Your home value has time to grow.
  • Your mortgage balance shrinks or disappears altogether.

That combination creates more options than you’d expect, even in today’s market.

So, whether you just retired, or you’re about to, it’s not too soon to start thinking about what comes next. Sure, it can be hard to leave the house you made so many years of memories in, but maybe it’s time to close one chapter to open a new one that’s just as exciting. 

Bottom Line

Downsizing is about setting yourself up for what comes next – on your terms.

If retirement is on the horizon and you’ve started wondering what your current house (and your equity) could make possible, the first step isn’t selling. It’s understanding your options.

It’s time to talk to an agent. A simple, no-pressure conversation can help you see what downsizing might look like – and whether it makes sense for you.

Top 2026 Housing Markets for Buyers and Sellers

Who doesn’t love a top 10 list? Well, here are two top 10 lists for the housing market this year. But before you take a look, there’s something you should know.

If a move is on your radar for 2026, here’s the most important thing you need to understand upfront: there isn’t one housing market this year – there are many.

Experts agree 2026 is shaping up to be one of the most geographically split housing markets in years. Some areas are tilting in favor of sellers, while others are opening real doors for buyers. Who has the advantage depends almost entirely on where you are. Selma Hepp, Chief Economist at Cotality, puts it this way:

“Looking ahead to 2026, regional differences will remain pronounced, with demand favoring areas that offer both economic opportunity and relative affordability.”

To show just how divided the landscape is, here’s a look at where sellers are expected to have the upper hand, and where first-time buyers may finally find their opening this year.

Where Sellers Are Poised To Win Big in 2026

Zillow identified the following metros as some of the strongest seller markets for 2026, based on buyer demand, pricing momentum, and how quickly homes are expected to sell:

a wooden house and a stack of coinsIn markets like these, buyers are going to be competing for limited inventory, which gives sellers more leverage.

Homeowners in seller’s markets this year can expect:

  • Stronger buyer interest

  • Shorter time on market

  • Better odds of selling close to (or above) asking price

That doesn’t mean every listing is guaranteed success. But it does mean sellers who prepare well and lean on an agent’s expertise should be very happy with their results in 2026.

Markets Where There’s More Opportunity for First-Time Buyers

On the flip side, here’s a look at where buyers have the power – in particular, first-time buyers, since they’ve had the hardest time breaking into the market lately. Realtor.com highlights the top metros where first-time buyers are expected to have better opportunities in 2026:

a girl riding a skateboard in front of a houseThese markets stand out for a mix of:

  • More affordable home prices

  • Better housing availability

  • Strong local amenities and economic health

For first-time buyers, that combination matters. It’s what could finally turn “someday” into “this could actually work.” In buyer’s markets, they should expect:

  • Less intense competition

  • More room to negotiate

  • A clearer path to getting an offer accepted

What Matters More Than Any Top 10 List

Not seeing your city on the list? Don’t stress. This is just a national snapshot, not a judgment on your local market. The goal here is just to show you how different the market really is depending on where you are.

And remember, you can buy or sell no matter how your local market leans. You just need an agent’s help to figure out the right strategy to get it done. For example:

  • A seller in a more buyer-friendly metro may need to be aggressive on their price and prep.

  • A buyer in a seller-leaning area may still need to come prepared with their best offer.

To find out where your market falls and what you should expect, you’ll want the help of a local expert.

Bottom Line

The housing market in 2026 isn’t one-size-fits-all. It’s a year where local conditions matter more than ever.

Whether your market leans more buyer-friendly or seller-friendly, the right strategy can put you in a strong position. And that’s where a local expert comes in. Connect with a trusted real estate agent today.

You May Not Want To Skip Over That House That’s Been Sitting on the Market

When you see a house that’s been sitting on the market for a while, the reaction is almost automatic. You start thinking:

  • What’s wrong with it?

  • Why hasn’t anyone bought it yet?

  • Am I missing something?

That mindset made sense a few years ago. But in today’s market, you may actually miss out.

More Time on Market Isn’t Automatically a Concern Anymore

A few years ago, homes sold in just a matter of days. Sometimes, hours. Anything that lingered longer than that raised concerns. But that’s no longer the baseline.

Inventory has grown. Buyers have more choices. And homes are taking longer to sell across the board. Those are some of the reasons why the typical time it takes a home to sell has climbed this year:

a graph of blue barsAnd it’s not that 73 days is slow. That’s actually pretty normal for this time of year. It just feels slow because you heard so much about houses being snapped up in the buying frenzy a few years ago.

That shift alone explains a lot of what you’re seeing. It’s not necessarily that there’s anything wrong with the house itself. Although, let’s be honest, sometimes that is the case.

Most of the time today, a house that’s taking longer to sell simply means:

  • There are a lot of homes for sale in that area

  • The seller priced a little too high at first

  • The home didn’t photograph as well online

  • Buyers passed it over for flashier listings nearby

  • The timing just wasn’t right when it first hit the market

None of those are necessarily deal-breakers.

What Buyers Often Get Wrong About These Listings

Because even though you may assume a house that hasn’t sold must have hidden issues, the reality is, that’s not always the case. And, if the house does have issues, it’ll show up quickly in your inspection.

That’s information you can use to negotiate. Not a reason to walk away automatically. And in many cases, that’s where buyers find the best deals.

The key is knowing which homes that have been sitting for a while are worth a second look – and which ones aren’t. That’s why working with a local agent makes a real difference. They’ll be able to look at disclosures and more to help you uncover hidden gems other buyers may overlook. 

Bottom Line

A home sitting on the market isn’t always a warning sign. Sometimes it’s an overlooked opportunity.

If you want help identifying which homes are worth a second look (and which ones to skip), talk to a local agent.

Stay informed