Historic Facts about Hurricane related to the real estate market
- Hurricane Katrina hit August 2005, and the first quarter of 2006 saw at 60% jump in sales versus the first quarter of 2005.
- Hurricane Andrew saw a dip in sales the next quarter, but it had completely rebounded by the second quarter, then nearly doubled in third and fourth quarter.
- Sales in the area hit by Hurricane Ivan rebounded to pre-storm levels within 45 days.
- Hurricane Harvey saw a 50% drop in sales for two months, but responded with a 31% increase shortly after.
- After Hurricane Irma, saw a small dip and tight inventory early on, but within 6 months the market recovered and remained strong. Days on Market is now the lowest it has ever been.
- It is well established among economists that hurricanes do cause short-term (3 months) negative economic impact, but the long-term impact is actually very positive, and real estate is the driving force behind that.
CPAR MLS Statistics - October 10th through December 4th
Note: MLS Members can run this report themselves in Flex under Menu > Market Trends > Year Over Year Comparison
SWOT Analysis of the Housing Market - by Richard Gibbens
Strengths: Location, Location, Location. We still have more waterfront property than most areas – it’s difficult to find anywhere in our area that you are more than 15 minutes from water. We are still a desirable destination to visit and live. Even areas that are away from the water are in the middle of major transformations into trendy areas that will greatly benefit from new construction.
Weaknesses: We have a huge shortage of skilled trade workers in the area, so we are relying heavily on out of town crews to help us rebuild. These crews will sometimes not put as much pride in their work because they can just leave when they are done, and don’t have to worry about their reputation as much as they would in their home town. I’m also worried about the damage to commercial structures leading to a big drop in the number of small businesses in the area.
Opportunities: The storm presents a great opportunity to rebuild utilities – underground power lines, updating water and sewage systems, replacing copper communications lines with fiber, and updating cellular backhaul. These updates are extremely important to both younger buyers and to large employers looking to move into the area.
Threats: Outside investors are chomping at the bit to buy distressed properties in the area. Some of these investors will jump right on rehabbing the structure and trying to flip it, but many will simply buy it an sit on it, waiting for property values to come back up. In the meantime, the damaged structures will remain, which can lead to blight if there are too many of them.