{"id":3194,"date":"2022-06-06T16:39:01","date_gmt":"2022-06-06T16:39:01","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/06\/high-fire-risk-homes-selling-for-more-than-low-risk-homes\/"},"modified":"2025-03-13T02:43:59","modified_gmt":"2025-03-13T02:43:59","slug":"high-fire-risk-homes-selling-for-more-than-low-risk-homes","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/06\/high-fire-risk-homes-selling-for-more-than-low-risk-homes\/","title":{"rendered":"High fire-risk homes selling for more than low-risk homes"},"content":{"rendered":"\n

Homes in high fire-risk metropolitan areas are selling for nearly $120,000 more than homes in low-fire-risk areas, according to a new report<\/a> from Redfin<\/strong> published on Monday.<\/p>\n\n\n\n

Typical high-risk homes sold for $550,500 in April, while typical low-risk home sold for $431.300, a 27.6% difference, the brokerage found. In comparison, two years ago the price difference was $56,700. In addition, the median sale price of a high-risk home rose 51.7% during pandemic, while the median sale price of a low-risk home rose 40.9% during the same time period.<\/p>\n\n\n\n

Wildfires in the U.S. have become more and more catastrophic in recent years, with the National Interagency Fire Center<\/strong> reporting<\/a> that the most destructive wildfire years, in terms of average burned, have all occurred within the past 10 years.<\/p>\n\n\n\n

Research<\/a> has shown that although homebuyers are concerned about climate risk<\/a> when deciding where to buy, it is not a dealbreaker, as factors such as relative affordability, home size, and proximity to family and friends takes precedence.<\/p>\n\n\n\n

\u201cPandemic buyers also hunted for deals due to surging home prices, and while fire-prone homes aren\u2019t cheaper on average, buyers may feel they\u2019re getting more bang for their buck because they\u2019re getting more space,\u201d Sheharyar Bokhari, Redfin\u2019s senior economist, said in a statement. \u201cAnd for some pandemic buyers, the fire-prone home they bought in suburbia was<\/em> actually cheaper than their last home because they were relocating from somewhere like San Francisco or Seattle.\u201d<\/p>\n\n\n\n

However, Corey Keach, a Redfin agent in Boulder, Colorado added: \u201cAs the market cools and shifts more in buyers\u2019 favor, buyers may start thinking more about climate risk. My advice for house hunters in fire-prone areas is to look at newly built homes, which are more likely to have sprinkler systems and concrete-board siding instead of wood siding.\u201d<\/p>\n\n\n\n

The report combined fire-risk data from ClimateCheck<\/strong>, with MLS data in roughly 700 U.S. metropolitan areas. ClimateCheck assigns six different fire-risk categories to properties across the U.S.: very low risk, low risk, moderate risk, high risk, very high risk and extreme risk. For the purposes of this report, a high-risk property is one that falls into the high, very high or extreme category, while a low-risk property is one that falls into the very low, low or moderate category. The climate risk data used in the report is from March 31, 2021.<\/p>\n\n\n\n

Experts believe that this price differential has come about as, homebuyers have flocked the suburb, where homes are more likely<\/a> to face fire risk due to the proximity to flammable vegetation. Additionally, fire-prone homes have historically gone for higher prices, as they tend to be located in expensive West Coast metro areas and larger in size.<\/p>\n\n\n\n

The typical high-fire-risk home purchased in April was 2,000 square feet, while the typical low-risk home was just 1,706 square feet.<\/p>\n\n\n\n

Despite the higher median sales price, sellers of high-fire-risk homes have become more likely than sellers of low-risk homes to slash cut their listing prices after putting the home of the market. In April, 21.9% of high-risk homes had a price drop, while 18.8% of low-risk homes had a price drop. April was only the second month on record (the first being March), in which fire-prone homes were more likely to have price drops.<\/p>\n\n\n\n

However, across the country, price drops<\/a> are on the rise, as mortgage rates have risen to some of their highest levels in the past decade.<\/p>\n\n\n\n

In addition to higher prices, homes with high fire-risk are also selling faster than low-risk homes, with the typical high-risk home sold in 16 days in April compared to 20 days for a typical low-risk home. Prior to the pandemic, low-risk homes typically sold faster. In addition, 62.4% of high-fire-risk homes sold within two weeks in April compared to 55.1% of low-risk homes.<\/p>\n","protected":false},"excerpt":{"rendered":"

Homes in high fire-risk metropolitan areas are selling for nearly $120,000 more than homes in low-fire-risk areas, according to a new report from Redfin published on Monday.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nHigh fire-risk homes selling for more than low-risk homes - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"A Redfin report found that homes in high-fire-risk areas sold for 27.6% more than homes in low-risk homes in April.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/06\/high-fire-risk-homes-selling-for-more-than-low-risk-homes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High fire-risk homes selling for more than low-risk homes\" \/>\n<meta property=\"og:description\" content=\"A Redfin report found that homes in high-fire-risk areas sold for 27.6% more than homes in low-risk homes in April.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/06\/high-fire-risk-homes-selling-for-more-than-low-risk-homes\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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