Hurricane Ian’s Financial Toll Threatens Florida’s Real Estate Market
According to the National Hurricane Center, Tropical Storm Ian is expected to make its way across the Florida peninsula between Miami and Tampa this week. Its first landfall in the Sunshine State is projected to be between Lakeland and Orlando. The storm is expected to make landfall on Wednesday between Tampa and Orlando.
At the root of Tropical Storm Ian’s power is its unpredictability. It is a Category 2 hurricane with winds of near 80 mph and is forecast to make landfall near Tampa on Wednesday. If it does, it will bring severe winds and heavy rainfall to the region.
To say the Florida real estate markets are in trouble as a result of this storm would be an understatement. Some estimates even put the damage at $26 billion.
While Florida’s real estate market is undoubtedly going to experience some serious volatility during the next few weeks, it is worth keeping in mind that this storm would not have been considered “unbeleivable” if it was not such an inconvenient storm to hit the market anyway.
Is It Still Possible for The Florida Homeowners Market to Recover?
When Tropical Storm Allison hit the Florida area in September of 2012, the real estate market in the state tanked. However, according to real estate experts, there is still a possibility for the home prices and interest rates to begin to normalize by the end of the year.
It is still possible that prices could drop by another 2% or so. In the meantime, a major shift in how the real estate market works would have to occur before prices would begin to recover in earnest. That shift is about the market becoming a more consumer-driven one.
The Florida real estate market would have to become more reliant on the consumer. That shift would have to take place not only because of the high taxes and high costs of doing business in the state as a result of