The Ragetté Report
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Westchester County Home Insurance up 57.1% from 2020

Westchester County Home Insurance up 57.1% from 2020

Plus, How Much Does It REALLY Cost to Build a House, Fed Hits Pause: No More Rate Cuts - for Now, and Home Prices Are Usually Lower in the Off-Season

Ralph Ragetté Jr
January 31, 2025 • Reading Time: 10 minutes

I’m in the Top 29%.

Here’s a staggering statistic making news this week: 71% of the 1.5 million Realtors nationwide didn’t close a single deal last year — not one. Yet, real estate membership keeps climbing. Meanwhile, the mortgage industry has taken a different path, shrinking from 495,000 licensed loan originators before the pandemic to under 95,000 today — a massive shift toward quality over quantity.

Running a small firm means I have control over the level of service provided to our customers and clients. But for those who work with a big-box brokerage, you could end up with an agent from that 71% who never closed a deal. Please be careful who you work with — it makes a difference.

Today’s Topics:

Westchester County’s home insurance premiums are way up
What it cost to build a house last year
The Fed hit pause on rate cuts
Waiting until spring to buy could cost you money

Westchester County Home Insurance up 57.1% from 2020

Home Insurance Premiums by County Since 2020

California’s battle with recent wildfires has resulted in the deconstruction of more than 57,000 acres and 16,000 structures, estimating $35 – $45 billion with insured losses. Before the fires began, insurance non-renewal rates had been climbing nationwide, with Florida bearing the brunt — home to 9 of the 15 counties experiencing the largest premium increases between 2020 and 2023, according to ResiClub. Increasing disaster risks, combined with pandemic-driven spikes in housing and construction costs, have pushed insurance premiums and repair expenses higher — and Westchester County is also feeling the impact. Here’s how:

2023 Non-renewal rate: 0.54%
Median insurance premium paid in 2020: $2,460.38
Median insurance premium paid in 2023: $3,866.29
Westchester County’s change 2020 - 2023: 57.1%

Ralph’s Take

Affordable homeowners’ insurance is becoming a thing of the past. As climate disasters grow more frequent and severe, insurers are either raising premiums or withdrawing from high-risk areas altogether. Without meaningful intervention or industry reform, homeowners will face fewer coverage options and rising costs. However, new tools are emerging to assess climate risk ratings for properties on the market. To avoid surprises, it's wise to consult with your insurance agent early in the home-buying process.

Westchester Weekly Market Tracker 📈

‘Coming Soon’ Listings: 27 ↑+6
New Listings: 161 ↑+7
Price Reductions: 42 ↑+2
Pending Sales: 130 ↑+35
Closed Sales: 141 ↑+9

💰 Highest Sale: 21 Pokahoe Drive, Sleepy Hollow: $3,250,000 (-3%)

_{Property Type: Single-Family. OneKey Multiple Listing Service, Inc. 1/24/25 - 1/31/25.}

How Much Does It REALLY Cost to Build a House?

The National Association of Home Builders (NAHB) just released its 2024 Cost of Construction Survey, showing that construction expenses made up 64.4% of the average newly built single-family home's sales price — an increase from 60.8% in 2022. The average construction cost reached $428,215, or $162 per square foot, while builder profit accounted for 11% of the total price. Based on responses from 41 builders, the study details cost allocations across site work, foundations, framing, major systems, interior finishes, and final steps.

Average sales price of new construction was $665,298
Framing costs (including the roof) accounted for 11.6%
Excavation costs (including foundation and concrete) accounted for 10%

Ralph’s Take

During and after college, I worked for a local home builder in Pound Ridge (check out Nordic Construction), which is why this topic is so fascinating to me. Breaking down the costs of new construction is crucial for anyone looking to build — smart budgeting, cost control, and thorough planning are the backbone of a successful project. Finding land in Westchester County that is ready for development has become increasingly difficult, with prices fluctuating based on factors like topography, and the hurdles of securing Zoning, Planning, and Board of Health approvals. Interested in land? Find it Here

If you’ve ever said

“This house feels too big for us now...”

It might be time to downsize.

6% of homeowners over 60 years old are planning to sell this year

If you’re debating whether or not to downsize, a Professional Home Equity Report can help. Even if you’re not ready to sell yet, I think you’ll find this report incredibly helpful. If you would like me to prepare one for you (at no cost) reply to this email with your address and I’ll get started today.

Fed Hits Pause: No More Rate Cuts — for Now

In its latest policy meeting, the Federal Reserve opted to maintain the federal funds rate at 4.25% to 4.5%, pausing after three consecutive rate cuts. Fed Chair Jerome Powell emphasized there is no immediate need to adjust the policy stance, noting that while inflation has decreased from its 2022 peak, it remains slightly above the 2% target. This decision comes amid political pressures, with President Trump criticizing the Fed for not implementing deeper rate cuts to stimulate economic growth.

Ralph’s Take

The Fed’s decision to keep rates steady comes as no surprise, with little impact on the mortgage market. Its focus remains on the labor market, but inflation remains a concern — especially for homebuyers facing high prices and borrowing costs. Mortgage rates could stay elevated longer than expected if the Fed continues to prioritize employment over aggressive inflation control. The Fed’s cautious stance may also reflect uncertainty around how current trade, tax, and immigration policies will shape the economy.

Visual of the Week 🖼

Home Prices Are Usually Lower in the Off Season

Why wait for spring? Here’s why buying now has its perks.

Many buyers think spring is the best time to move, but here’s the truth: winter can offer some big advantages. With fewer buyers in the market at this time of year, home prices tend to be at their lowest point just before the spring competition heats things up. Why pay more later? Buying a home this winter could work in your favor. Let’s connect

Mortgage Watch 📉

Today’s average 30-year fixed mortgage rate stands at 7.05%.

The lowest rates in over a month 🥳 — by the slimmest margin (-0.02%) 😖!

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.