Real Estate Gains Boost Demand for Homeowners Insurance

A growing number of consumers are shopping for homeowners insurance policies, judging from some of the strongest real estate figures in recent memory.

This week, the Commerce Department reported that single family home sales rose 11 percent, to about 384,000 units nationwide. The average home price was reported to be $206,200, down 6 percent since May alone, and 12 percent lower than last June's average.

The falling prices have helped fuel consumer interest in the real estate market, which has been struggling for about two years.

An Associated Press report offers some additional insight into how encouraging the latest real estate figures are. According to the wire service, monthly sales have not increased so much since December of 2000, while more recently, sales have now risen for three consecutive months.

Another factor fueling the improvement in the housing market has been the ongoing increase in foreclosures, which have helped hold down home prices in general. With the market showing more consistent strength than it has in several years, demand for homeowners insurance is likely to increase as well.

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