You may be looking to find the perfect home in the perfect neighborhood at the perfect price, but fate may have a different plan for you. As much as we prepare for our future and try to maintain our safety and security, not everything is under our control and 2017 gave us several examples of what can go wrong. Last year could easily be dubbed, “The Year of the Natural Disaster,” particularly when we’re talking about hurricanes.
Cliffco Mortgage Bankers Will Help You Navigate the Housing Market
, the costs associated with Hurricanes Harvey, Irma and Maria along with devastating western wildfires made 2017 the most expensive year in history for natural disasters in the United States. The natural disasters cost us $306 billion in total damage, with 16 events costing more than $1 billion each. But what about the housing market? Do homes that are located in disaster zones actually sell at fair market value?
At Cliffco Mortgage Bankers, we know the concern uncertainty in the housing market brings. That’s why we like to educate our clients about their financing options. We want our customers to be smart and savvy so we want to tell you about the relationship between natural disasters and the housing market.
The Hurricanes of 2017
According to , hundreds of thousands of homes were destroyed in hurricanes that struck in 2017. In August, Hurricane Harvey struck the Houston area and caused massive flooding. About 94 people lost their lives. In September, Hurricane Irma covered almost the entire state of Florida. About a quarter of the homes in the Florida Keys were destroyed and there were 130 deaths. Later in September, Hurricane Maria Devastated Puerto Rico knocking out power and water to major portions of the island. The exact death toll in Puerto Rico has been subject to dispute.
Realtor.com says that the results of these storms are going to be painful to local real estate markets with rental prices likely to soar and the possibility of years of rebuilding.
But what does past history tell us about natural disasters and real estate? It . For example, property values plummeted in several New Orleans neighborhoods after they were hit with Hurricane Katrina in 2005. But unlike New Orleans, Houston is above sea level so the flooding there may not be as catastrophic.
Superstorm Sandy in 2012 might have devastated areas around New York City, including Long Island and the Jersey Shore, and home sales stopped for a while, but the market heated up again. Prices didn’t bottom out because potential sellers who were impacted took their homes off the market because they knew they wouldn’t get the best price. It took about three years for the market to stabilize but it has come back. It took a lot longer for real estate to be viable in New Orleans.
Cliffco Helps Clients Find Their Place in The Market
It remains to be seen how particularly devastated areas like the Keys and Puerto Rico will come back from disaster, some will lose money on their property, others may not. Understanding the market is key and it’s one of the reasons Cliffco wants you to understand your financing options. The more you know about what loans you can qualify for, the easier it will be to find your place in the market. today.