Hurricane season is in full swing, and it will not be over until November. Hurricanes can have a major impact on every facet of the economy, including the real estate. If you are considering purchasing a home or a condo, you may wonder how hurricane season—or a potential hurricane—will influence the housing market.
Hurricane season and real estate: what to know
The real estate market is sensitive to influences from a variety of places, including tropical storms. Here are some of the most important factors related to hurricanes that can influence real estate transactions:
- Home value: The Florida housing market is incredibly competitive. Sales and purchases frequently drop during severe weather, but quickly regain steam afterward. Once hurricane season is over, the market sees a positive correction and the homes regain their previous value.
- Location, location, location: Houses in Florida’s so-called “hurricane corridors” often experience severe and expensive damage. Hurricanes rarely travel more than a few miles inland. Generally, they remain close to the coasts. Because coastal properties are so desirable, they tend to retain their value, even before and after a hurricane.
- Storm damage: Hurricanes can cause devastating damage to houses and residential complexes. Sellers who wish to unload their house quickly may have to accept a loss, or at least a smaller profit than expected. Eagle-eyed buyers can sometimes find a good deal on a home that has suffered storm damage.
Hurricane season is simply an unavoidable fact of life in Florida and along the East Coast. Whether you are looking to purchase a first home, an investment property or a vacation home, the season can influence myriad factors in your transaction. You should consult your real estate attorney to discuss how the weather may play a role in your purchase or sale.