Real Estate Post Ian.
In today’s video, we discuss what happens 30-60-90 days after a hurricane and how this will impact Sarasota’s housing prices.
What will happen to Sarasota home sales post-Hurricane Ian?
Many would assume that people would NOT want to move to the area or perhaps even people choosing to leave the area which would in turn flood the market with homes and prices would drop. However, that is NOT exactly what happens after a hurricane.
There is a lot to dissect on the housing market post-Hurricane Ian and we are going to talk about it all in today’s video. If you have questions about our area, the condition of Sarasota, and surrounding areas since Ian please give me a call or leave comments below.
Everyone in Sarasota, Lakewood Ranch, area knows we are quite lucky.
Unfortunately, our neighbors to the south were not. I realize everyone hears about Fort Myers Beach and Naples but our cities to the South such as North Port and Englewood were greatly affected and this as well as what happened in Lee and Collier counties will have a significant impact here.
There are a number of housing factors that will start taking place in the months to come.
First, this feels a little bit like vulgar to me however it is a natural part of a natural disaster and many investors will be looking to pick up distressed properties.
I do understand though. Many homeowners may choose not to remain, to not re-build or they simply do not have the funds to rebuild. A number of coastal homes may not have mortgages on them and would not have insurance on them. This means it is up to the homeowner to rebuild at their cost. Yes, FEMA steps in but they are not just giving someone a million dollars to replace their homes.
Which will lead to many well-funded investors picking up properties or offering to purchase these homes for 30-60% less than their previous values. So if someone has a million-dollar home on the beach they may offer 600,000 and take on the cost to rebuild it. This can be true also for cities such as North Port where the average home price was under 400,000. Investors may offer underinsured homeowners 200,000-250,000 to walk away from their homes.
All these homeowners are trying to figure out where to go next.
Again, some may leave Florida completely, and others may move East, inland, or perhaps further North toward Sarasota, Lakewood Ranch, Bradenton, and Parrish.
Just this week I had a buyer that was originally looking at beachfront homes decide they now want Lakewood Ranch. I had another that did decide Fort Myers was still their best location for what they wanted for the price.
As you can see home buyers are still out looking.
What is still quite apparent is that those that have always dreamed of moving to Florida are still moving to Florida. They may be moving to a different part but they will still move here. In general, Americans have short attention spans and we, unfortunately, forget about most natural disasters whether that is wildfires, tornadoes, or hurricanes.
How will all of this affect pricing in our area?
Before Hurricane Ian ever formed home prices in our area started to stabilize or retreat from the days of craziness. As mentioned with many displaced homeowners this may prompt homeowners to look toward Sarasota and Manatee counties. Although with rising interest rates the likelihood that this would lead to another housing boom as we saw in the past few years is very unlikely.
Looking back at history after the devastation of hurricane Andrew in 1992 many surrounding counties saw a slight housing boom as many residents choose not to return to Miami-Dade County.
Also, keep in mind as Lee and Collier County begin rebuilding housing for those in the construction industry will increase. Unfortunately, some areas are adversely affected such as North Port is home to more affordable housing.
Will this push more home buyers toward Parrish or Palmetto?
At this time Parrish and Palmetto in Manatee Counties are more affordable than Sarasota proper and development is quite strong in these areas. Ok, Though, What about new construction costs due to the demand to rebuild south of us will we see direct impacts?
In the short term, such as the next 30-60 days we will most likely NOT see too much change.
As we head towards our busiest selling season that may change. One, many of the communities to our south are not ready to resume building or will be building a little slower for the next few months but what will happen over the next 6-12 months could cause some major shortages in new construction.
First, we are still dealing with a lack of contractors, builders, subcontractors, etc.
Second, the demand for supplies to the south will again impact the supply chains and we may be back to having delays for windows, roofing and so much more.
The impact of Ian will play out over the next year or beyond but this will not lead to declining prices or decreased demand from those moving to Florida. What we were already seeing due to our current economy will continue happening with just a slight impact from Ian in our local cities.
Time will tell what will happen to Sarasota home sales post-Hurricane Ian.
However, I am certain that Florida will rebuild and if you drive around any of the Florida Gulf Coast you are sure to see home construction and signs for new homes everywhere still.
If you would like more information about moving to Sarasota please let us know. Give us a call today. And if you have found the videos helpful be sure to subscribe and leave comments below. Thanks so much for watching and until next time. Take Care,