Weakened Florida Real Estate Could Be Battered If Hurricane Season Is Fierce
If you are a homeowner in Florida odds are you discuss the real estate market fairly constantly in your daily life. The huge swings the state experienced over the past 5 years with the tremendous boom of appreciation to the stagnant and moribund nature of the past year has been extraordinary.
Now as the hurricane season is coming and we have had 2 named storms very early, concern over the impact of a bad season is entering the conversation. What would be the impact of a particularly bad hurricane season. Some, such as those quoted below, think it would be especially bad, but the reverse is that if inventory was reduced and federal relief dollars pour into the state, there may be an uptick.
If you are a Florida real estate agent, what do you think about an especially strong hurricane season will do to the real estate market.
What got me started thinking about hurricanes was a conversation with real estate analyst Jack McCabe, who said that if we have another hurricane season like the ones that brought us Frances, Jeanne and Wilma – plus Charley and Ivan on Florida’s west and Gulf coasts – “it could place the health of our real estate markets in jeopardy for the next 10 years.”
“Everyone is afraid to talk about h-h-h-hurricanes, ” McCabe said. “But if we get the Big One that rolls up (Miami’s) Biscayne Bay and hits all those condos, it could have a devastating impact.” McCabe also thinks everyone is afraid to talk about “r-r-r-recession,” even though analysts from all over the country voice strong concern that we may see some recessionary pressures by the end of this year or definitely in 2008, he said. “For the long-term economic health of Florida, it’s a good correctional cycle.”
Florida has been through such cycles twice in the past 30 years, McCabe said. via the Palm Beach Post
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Comment by Carmen on 4 June 2007:
HOW DARE YOU INSULT MY PROFESSION!!!
Realtors have been around since the dawn of time. In every ancient tale of creation, there are stories of realtors being created before average men, because someone had to sell them the land to farm.
It’s true. In the middle ages, we sold castles with moat upgrades and helped serfs get into starter farms. Without farms, no one would have survived the black plague. That’s right, realtors actually stopped the black plague. And don’t you forget about it.
Watch out when you’re in Phoenix, because I read in Realtor Monthly Magazine that your “no-realtor-flipping-transactions” are actually illegal. Check the books. Only realtor-negotiated transactions in the state of Arizona. It’s a fact. That’s why Phoenix is growing so quickly. It’s posted the highest rate of growth since the years following the Louisiana Purchase.
If you’re not careful, you could get yourself on the Nation Realtor’s blacklist.
Sincerely,
Carmen Sandoval
Comment by Tom on 4 June 2007:
Carmen,
As long as you are mad at me I feel comfortable. If for some strange chance you decide to be on my team, then I am in deep doo doo.
Tom
Comment by Patrick West on 10 June 2007:
Florida has several issues that must be dealt with if it is to continue to grow and prosper. The huge appreciation in real estate brought increased property taxes and gulf coast hurricanes have caused insurance prices to sky-rocket. A direct hit by a major storm this season could be the proverbial straw that broke the camel’s back.
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