Climate Changes and Real Estate
Saturday Aug 21st, 2021
The extreme weather conditions across Canada can make any home seller and buyer pause on buying or selling properties in certain regions. The recent flash floods in Alberta, wildfires in British Columbia, and unprecedented heatwave across North America are only the beginnings of far bigger problems brought about by climate changes.
Whether you believe it or not, climate change has been recognized as one of the rising factors in purchasing or selling properties in most of North America. Experts have alleged that the real estate industry should make it mandatory disclosure for potential home buyers to know if their potential property will be underwater in 30 years due to the rising sea levels or how susceptible is the listed property to wildfires. These sales factors are coined as climate change risk assessment - to let potential sellers and buyers know what they are in for in the long term.
The US has been providing this type of information in recent years and Canada is following suit. This is good news to both home buyers and sellers as this is added consumer protection for one of the biggest investments in their lives.
Correlations between climate change and real estate studies have proposed the idea of “real estate climate-risk index (REC) – a scientific measurement of sorts that could offer Realtors and potential buyers a “walk score” style rating for “evaluating the climate risk” of properties.” (Chris Chopik, Property Value in an Era of Climate Change).
This would make the real estate market industry more ready to balance between consumer interests and industry standards - creating a stronger real estate market for years to come.
If you need help navigating disclosures and other murky questions in buying or selling homes, contact JoAnn Visaretis.