Hurricane anxiety hits Florida housing market

The home is at extreme risk of flooding, and you’d need a separate policy to even get a federally backed loan, according to new climate risk assessments implemented by Zillow and First Street. The property has a 100% chance of being flooded in the next 30 years, the length of America’s favorite mortgage.

So the question remains, would you buy it?

For most people, the answer is: not a chance. Florida is prone to hurricanes. I’ve always known this, but it could impact home sales in coastal metropolitan areas. In the four weeks ended Oct. 6, national pending home sales rose 2 percent from a year ago, marking the biggest increase in three years, according to Redfin; they are actually growing in most urban areas other than Florida.

In West Palm Beach, pending home sales fell nearly 18 percent, the biggest drop of any of the 50 most populous metro areas. Then there’s Tampa, which saw a 15.5 percent drop in pending home sales. In Miami, pending home sales fell nearly 15 percent.

“This is due in part to Hurricane Helene, but the real estate market on the Florida coast has slowed over the past few months as insurance and HOA costs rise due to the increasing prevalence of climate disasters,” the analysis said. He continued, “Hurricane Helene — and Hurricane Milton, which hit just days later — could have a bigger impact on future home sales.”

The two issues are particularly acute in the Florida condo world, where in some metros, supply is increasing and prices are falling for those very reasons. In July, the number of condos for sale in Tampa rose about 57% from a year earlier; however, prices fell by 5%, a separate Redfin analysis found. The same happened in Fort Lauderdale, Jacksonville, Miami and Orlando. Homeowner association fees have increased due to additional maintenance requirements for condominiums and rising insurance costs, which have also been declining due to the increasing severity of weather-related events and more insurers fleeing state.

Not to mention, a previous survey commissioned by Redfin found that nearly a third of residents between the ages of 18 and 34 said they were reconsidering where they want to live after seeing or hearing about the damage caused by Hurricane Helene. “Americans are starting to realize that nowhere is truly immune to the impacts of climate change, and we’re starting to see that impact where people want to live, even people who haven’t experienced a catastrophic weather event firsthand,” Redfin’s chief economist. said then.

Housing is already so unaffordable for many people. Can you imagine tackling even more expensive insurance premiums? Well, that’s what people in Florida are dealing with, and in some cases, their homes are not insured. Unfortunately, Florida was affordable compared to California, for example, which is why people flooded into the state during the pandemic, but they may regret their decision. Homes in Florida are much more expensive than they were less than five years ago, for example, and that doesn’t even include insurance issues.