Tag Archives: climate change

Lenders with the best climate data will be in position to discrimate

As banks and other institutions get more detailed models, people who are most affected by climate change will face difficulties in getting financing.

We now live in a world where climate gentrification exists: People and institutions are starting to assess and appraise properties based on their susceptibility to climate impacts. The idea was largely hypothetical as recently as 2016, but over the past two years a decent body of work has emerged, much of it from U.S. academics, showing that both mortgage lenders and property buyers are pricing in some forms of climate risk.

Knowledge about climate change impacts, whether accurate or not, is already driving decisions by financial institutions that in turn affect livelihoods. Research by Jesse Keenan, an associate professor at Tulane University, and Jacob Bradt, a Ph.D. candidate at Harvard, found that lenders in some coastal and flood-prone areas are already requiring higher deposits before providing mortgages. They are also more likely to move such mortgages off their books via securitization, including to the government-sponsored entities Fannie Mae and Freddie Mac.

read more at: https://www.bloomberg.com/news/articles/2020-06-26/lenders-with-the-best-climate-data-will-be-in-a-position-to-discriminate

How climate change will effect home values

Note: although this story is from Australia is is a good reminder to revisit your home  insurance policies.

Dr Karl Mallon, director of science and systems for Sydney-based consultants Climate Risk, said Australia’s quintessential problem is that “you can build a house which is insurable tomorrow, but is wholly unsuitable 30 years down the track”.

The message follows the release by the independent Climate Council of its latest report, Super-charged storms in Australia, which argues that the nation is highly vulnerable to “storm surges associated with tropical cyclones and extra-tropical cyclones, including [more intense] east coast lows.”

Dr Mallon said that many Australians do not realise that a change in a property’s value does not occur when an extreme weather event takes place, but “when the market realises the event will occur and revalues the house…it’s the homeowner which is the sitting duck in all this.”

He pointed to a “disconnect,” between banks, government planning and the insurance industry, which is leaving Australian homeowners vulnerable to “climate change foreclosure”.

“There are potentially millions and millions of dollars of revaluation that has to happen in the property sector and it’s not going to be pretty. We could end up with suburbs where there is a wholesale collapse in value,” he said, highlighting “erosion, actions of the sea, landslip and ground contraction,” as some of the main impacts which are still largely uninsurable.

“It’s the banks who probably need to lead the charge…to sit down with insurers and planners and say, ‘Will you start providing insurance on this?’.”

read more at: http://www.smh.com.au/business/consumer-affairs/sydney-homeowners-face-properties-being-reduced-in-value-because-of-climate-change-climate-risk-group-says-20161115-gsq5mu.html

disclaimer: for information and entertainment purposes only

How Climate Change Could Wipe Out Surfing


Dan Ross began surfing when he was five years old. Growing up in Australia, Ross dreamed of becoming a professional surfer. “As kids, my brother and I practically lived in the ocean at our local beaches and experienced its beauty on so many levels.” Twenty-five years later and now a member of the ASP World Tour, Ross travels the world for surfing and he’s seeing the dramatic toll climate change has begun to take — threatening coastal communities and the sport he loves.

How does this effect the value of your home?  We here at SCAS don’t know about you but who wants to live in a world without surfing?  Home prices will go up and down but surfing is priceless.  Think it doesn’t affect us here in San Diego? Wrong!!  Ever try to surf Law Street after a storm?  Notice the stench in Mission Bay?  The erosion of the cliffs at Swamis?  Will this effect the value of your property? Contact the appraisers at www.scappraisals.com for your home value questions.

“In Australia, I’ve noticed higher tide lines and extreme beach erosion; its apparent all along the east coast … In America, I’ve seen places where houses are literally falling into the sea and you can really see the effects in California at Malibu and Point Dume.” And Ross says these changes are even more frightening for surf destinations such as the Maldives — with its highest point only 2 meters above sea level, it is currently at risk of being the first island nation to be submerged. “What would they do?” he wonders.Both the sport and culture of surfing are increasingly at risk due to the effects of climate change. Quite simply, surfing

Read more at: http://thinkprogress.org/climate/2013/08/01/2164691/endless-summer-how-climate-change-could-wipe-out-surfing/