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A New Year, and a New Rush of Bills (That May or May Not Have a Shot)
By: Mark Pazniokas, with ctmirror.org
Much like Gov. Ned Lamont’s inaugural speech Wednesday, the bills filed in the first week of the General Assembly’s five-month session offer Connecticut a hint of objectives to be pursued, if not a blueprint for producing them. Senate Democrats filed 10 bills cosponsored by all 24 members of the majority caucus, each a statement of a lofty purpose, such as Senate Bill 4: “To promote fair and equitable housing opportunities in every community in the state.” Exactly how that would be accomplished is for another day. “This is just a very first step procedurally,” said Senate President Pro Tem Martin M. Looney, D-New Haven. “We wanted to reserve these 10 numbers to show that these are the 10 themes that we want to address in the course of the session.”
Lamont also made housing an issue in his speech, though his policy solutions have yet to be reduced to legislative language. He also promised a middle-class tax cut, details to come.
Adam Joseph, the governor’s communications director, said the administration will be offering specifics in the weeks leading to Lamont’s budget address in February. “We look forward to working with our legislative partners to address issues that matter to Connecticut’s residents, including: housing, health care, energy, climate,
education and career readiness,” Joseph said.
All were issues raised in his speech and are addressed in legislation filed this week. The goal of Senate Bill 7 is timely, if vague. It seeks to “promote a more equitable and transparent energy market that works in the best interest of Connecticut’s consumers of energy.”
With everyone’s electric bill recently jumping to reflect the competitive market costs of generating power, energy legislation may be in vogue this year. House Bill 5013 provides a more specific, if whimsical, take on the issue than Senate Bill 7.
It states: “That the general statutes be amended to require a vote by each chamber of the General Assembly on all electric or natural gas rate increases approved by the Public Utilities Regulatory Authority.” PURA sets rates for transmission, roughly half a typical bill. The cost of generating power is set by the markets, not PURA, Eversource or United Illuminating. The bill was filed by Rep. Christine Conley, D-Groton, who said lawmakers were getting lots of complaints from constituents about electric rates. “The current laws don’t allow the legislature to do anything about it, so I put in a bill to start a discussion about how can we have a little more control over these rates, because the increases are really hard for a lot of families to pay right now,” she said. In legislative speak, “start a discussion” can be synonymous with “don’t hold your breath.”
Mitch Gross, a spokesman for the company that provides power to the majority of Connecticut homes and businesses, Eversource, declined to address the unlikely prospect of lawmakers voting on electric rates.
“We understand there’s been a request for legislation and look forward to seeing the specific language,” he said. “Until we can review the bill, it would be be inappropriate to comment.”
Looney said not every bill is filed with the expectation that it will become law. “Some people put in a bill as a statement of an ideal or sometimes as a statement of protest, knowing that it’s not actually likely to result in legislation but to strongly express a point of view on an issue and just to stake out a position,” he said. House Minority Leader Vincent J. Candelora, R-North Branford, agreed with Looney but noted that sometimes unlikely proposals gain traction. “We’re sort of in the megaphone process, making a statement, than seeing what can stick,” Candelora said. “You put your oar in the water, but if you can get some advocacy on an issue, sometimes to can go forward.” The General Assembly meets for three months in even-numbered years and five months in odd ones. Only in the longer session are lawmakers free to file individual bills; in the short session, they must be filed as committee bills.
“Because any legislator can introduce any bill they want, you do do get a mixture of things,” said House Speaker Matt Ritter, DHartford.
Committees will screen individual bills, clearing some for public hearings — and allowing others to die without action. The first months of the session turn on getting bills voted out of committee to the floor of the House or Senate.
House members filed about four dozen bills on Wednesday, the first day of the session. House Bill 5002 would extend bond covenant restrictions adopted in 2017 as a means to enforce so-called fiscal guardrails against overspending when revenues spike.
“This starts the conversation, and it was important to all of us that we get this out early,” said Rep. Maria Horn, D-Salisbury, the new co-chair of the Finance, Revenue and Bonding Committee. This is a conversation that has a better chance of leading to the passage of a bill. It is co-sponsored by Horn and the top Democrats, Ritter and House Majority Leader Jason Rojas of East Hartford, and reflects a priority of the governor. Rep. Jeff Currey, D-East Hartford, the new co-chair of the Education Committee, filed House Bill 5003, a measure cosponsored by the House leaders to reform the state’s complex formulas for subsidizing local education.
“Right now, we have a disjointed system of, I believe, 11 different formulas,” Currey said. “So we’re trying to wrap them all into one so that we get away from the internal and external battles when it comes to funding each budget cycle between our traditional public schools, our magnet schools and our charter schools, all of which are public schools.”
House Bill 5004, filed by Rep. Matt Blumenthal, D-Stamford, with Ritter and Rojas is a good bet for passage. It would implement early voting, as permitted by an amendment to the Connecticut Constitution approved in November. The bill does not yet specify exactly how early voting would be allowed. Other bills and resolutions run the gamut. Rep. Keith Denning, D-Wilton, is brand new, but one of his bills addresses an issue as old
as Tesla cars: It would allow car makers to bypass dealers and directly sell motor vehicles, the only way Tesla does business. Rep. Christie Carpino, R-Cromwell, has proposed a constitutional amendment placing a limit of two terms on the governor. It might have been appreciated by the last governor who was elected to three terms, Gov. John G. Rowland.
His third term was cut short by an impeachment inquiry, followed by resignation and a stint in federal prison.
What Will the CT Real Estate Market Hold in 2023? Mortgage Rates Could Hold the Key
By: Alexander Soule, with ctinsider.com
With rent increases nationally finally showing signs of flattening along with mortgage rates and home prices, people looking to move into Connecticut or within the Nutmeg State may get their best opportunity in the coming months dating back to the start of the COVID-19 pandemic. On the heels of Zillow reporting the sharpest monthly decline in rents in seven years in November, the Mortgage Bankers Association reported a slight increase in new mortgage applications this week. The average rate for a 30-year mortgage dropped to its lowest level since September, at 6.34 percent compared to 6.42 percent a week earlier. The Mortgage Bankers Association survey ropes in three of every four mortgage applications filed in the United States. Redfin reported earlier this month that buyers nationally are responding to the easing mortgage rates by doing another set of rounds of available listings, after being shut out of the 2022 market; or getting out ahead with plans to make a move in 2023.
"We are all aware of the need for more affordable homes [and] rentals," said Seila Mosquera-Bruno, commissioner of the Connecticut Department of Housing, during a November conference on affordable housing sponsored by the Partnership for Strong Communities. "These issues are not new to us."
Between April and June in Connecticut this year, home sellers got 4 percent more on average than the final listed price, according to Berkshire Hathaway HomeServices New
England Properties, though a percentage of those properties had prices reduced from original listings. That eased slightly over the following three months, but sellers continue to seek top dollar by historic measures. But prior the the COVID-19 pandemic, Connecticut houses were routinely selling by the same margin below asking prices — making for a buyers market, but with smaller numbers of people looking to buy, whether due to the desire to rent in the city or having yet to sock away enough money to support a mortgage. That buyers market washed away in the pandemic spike in prices as droves of families moved out of New York City, many of them wielding cash that sellers were happy to grab rather than wait on mortgage paperwork from other bidders. For buyers needing those mortgages who are still hunting for a starter home, it has been a frustrating process. In a Thursday study, Redfin reported that cash buyers continue to be active, whether purchasing primary or secondary homes for themselves, or as investment opportunities based on rent and resale value over time. Nearly 32 percent of properties nationally were purchased exclusively with cash in October, up about 7 percentage points from a year earlier. In the lone New England market broken out in the Redfin study — Providence, R.I. — one of every four properties was purchased with cash. Compounding that has been rapidly dwindling numbers of residential real estate listings. Entering October, there were slightly more than 5,000 single-family homes for sale in Connecticut as counted by Berkshire Hathaway, down from nearly 8,000 a year earlier and roughly 10,500 in October 2020.
Of Connecticut properties listed for sale since Thanksgiving, about 1,300 remain on the market heading into the Christmas weekend. They range from a three-bedroom house in Windham listed for $100,000 ("bring your tools" a listing blurb suggests) and several more condos and modular homes below that threshold; to a miniature stone castle in Westport complete with turrets and ramparts, where the owners want $12.5 million.
If the past several years are any indication, house hunters will get an inkling in early January of how many choices they will have in the 2023 spring market — and how much competition they may have for the best buys in whatever corner of Connecticut they are looking. On Thursday and Friday, 75 more Connecticut sellers decided to get a jump on the January market in listing their houses for sale.
The Biggest Factors Impacting Home Insurance to Start 2023
The $800 billion United States home insurance market is currently being challenged by three significant market conditions. The companies that respond the best to these challenges will provide the biggest benefits to consumers and win their trust, while old-fashioned insurance agencies that fail to adapt risk becoming irrelevant very quickly. It’s important to understand how market conditions affect an industry as large and valuable as property insurance – both as a homeowner shopping for home insurance policies and as a potential investor seeking to understand which insurance companies have an opportunity to gain significant market share in 2023.
How inflation affects home insurance
Inflation wreaks havoc on all types of consumer goods and services and insurance is not immune to its damage. The cost of insurance goes up during periods of inflation in response to the cost of things that impact claims and premiums. For example, the cost of repairing a home has increased this year. Materials and labor costs have gone up due to inflation and a shortage of skilled labor. As the cost to cover a claim spikes, insurance providers raise their premiums. That’s a costly double -hit for the consumer.
For consumers who are already feeling their budgets squeezed by rising prices just about everywhere, higher insurance rates can be crippling. The good news is that this is an ideal time for consumers to shop
around. In addition to finding lower premiums from a different provider, consumers might also discover discounts and incentives that they didn’t know they qualify for. Customization of insurance coverage is key during times of high inflation. It’s important for consumers to compare rates from as many companies as possible to make sure they aren’t paying more than they need to, or paying for things on their policy they don’t need. Companies that can leverage bundles while lowering overhead by keeping staffing and internal costs down are able to pass more savings on to the buyer. Times of higher inflation put a strain on everyone, but they can also reveal the insurance companies that are really working with the consumer’s best interest in mind.
Natural disasters are increasing
Tracking data on natural disasters reveals a dramatic increase in catastrophic events, especially from 1980 to today. In the last ten years, natural disasters have cost the U.S. $200 billion per year. Similar to the inflation model, as costs of repairs increase with the frequency of natural disasters, the cost of insurance premiums will follow.
In addition to homeowners insurance premiums going up across the country, many property owners are not properly insured against catastrophic events like floods. According to FEMA, floods are the most common and costly natural disasters in the United States. Still, many homeowners are misinformed about flood insurance. There are several misconceptions about what flood insurance covers, how to buy it and what it should cost. It’s important to consult an agent who can offer guidance on insuring a home against natural disasters, like floods. Too many homeowners discover after a flood that their policy doesn’t actually include flood insurance.
The truth is, all home insurance policies should include flood insurance. It’s too big of a risk right now for a homeowner not to have it. Homeowners who think they are protected because they live in a desert climate that isn’t listed as a flood zone should consider the recent deadly flooding that occurred in southern Nevada, including Las Vegas. In fact, 25% of all flood claims come from people living outside of high-risk flood areas.
With climate change causing an increase in catastrophic weather events across the country, the environmental impact to the insurance industry will only become more severe. It’s important for consumers to understand what their policies do and do not cover when it comes to natural disasters.
This type of coverage is also a big differentiator when comparing insurance companies.
Relocations, general anxiety and rate increases trigger more shopping
A rise in remote work opportunities encouraged many Americans to move, during the height of the pandemic and continuing into 2022. The Southeast saw the biggest increase in population, as people left places like California, New York and Chicago for warmer and less congested southeastern states like Texas, Florida and South Carolina.
As more people got mortgages in states where they hadn’t previously lived, many homeowners got their home insurance from companies they hadn’t previously done business with. While almost every state in the country saw home insurance premiums increase, lower taxes, housing prices and the overall lower cost of living made the southeast very attractive to budget
conscious consumers.
This influx of new residents offers a valuable opportunity to insurance companies that cover southern states. Providers who can offer competitive rates and superior customer service should be able to grow – despite challenging economic times.
According to a Consumer Pulse Survey conducted by Transunion in Q2 of 2022, topping the concerns of most Americans are inflation, the possibility of a recession and increased housing costs. As people reduce their spending in response to anxiety, they also take a closer look at their current expenses, including what they pay for home insurance. More consumers are likely to visit digital insurance aggregators in times of uncertainty. The ability to personally compare rates from over 50 insurance providers at once, without having to speak to a sales person, gives people a sense of control that they want–especially when facing an uncertain future.
The homeowner’s insurance market is very complex and still fragmented despite recent consolidations. Many insurance companies have failed to modernize their systems to the levels of customization and speed that consumers expect from service providers. That puts offline insurance companies at a huge disadvantage at the very same moment when more people are shopping around. The type of insurance company that will be seen as the remedy to all of the insurance anxiety people are feeling will be one that has the best access to the data needed to deliver quotes from the most providers, offer a seamless online shopping experience and ensure people are getting the coverage they need at the best price. Survivors know how to turn challenges into opportunities. The home insurance landscape will reveal this truth as well as any industry heading into 2023.
