Redfin agents in Sacramento and El Dorado counties in Northern California are also reporting a major shift in housing markets located in fire-prone areas, particularly those where premiums for fire insurance are rising and where PG&E is cutting power for days on end in an effort to prevent wildfires, something that could continue for decades. Debbie Olson, a Redfin agent in Sacramento, said homebuyers and sellers in the area are concerned about the impact of wildfires on home prices and total housing costs.
“Earlier this year, I worked with a couple who was selling their home in Auburn [located northeast of Sacramento] and looking to buy in the same neighborhood. But they were priced out because insurance premiums have risen so much due to wildfires,” Olson said. “They were quoted around $9,000 per year just for fire insurance. Even though the seller offered to pay half the cost for the first two years, my clients ultimately decided to buy a home in a neighborhood that’s less fire-prone to avoid paying such a high premium.”