Hurricane Ian devastated Florida’s southwest regions less than a month ago but investors and other buyers are already rushing to the locations where house prices have surged over the past few years, looking for good bargains.
Realtors are saying that the demand from both locals and people from other states remains high. Real estate agencies report numerous requests from potential buyers who still want to move to the Sunshine State or intend to purchase damaged properties for a pittance.
The expenses of protecting houses from the threats of strong winds and flooding, as well as higher insurance rates force some born and bred Floridians to leave, but several investors with a lot of cash are showing signs of interest.
Ken Johnson, Economist at Business College of the Florida Atlantic University, expects the prices to rise almost immediately, mostly due to invariably strong demand and smaller number of available properties due to the storm-related damage. Kristen Conti, a broker and owner of Peacock Premier Properties in Englewood, Florida, believes that house prices will remain high for 12 – 18 months.
Over the first few months, prices may fluctuate rapidly in both directions but the demand for living by the ocean, in a warm climate, and with conditions beneficial for the business invariably led to a quick recovery after the previous hurricanes, Dr. Johnson notes.
There are few places in the US where prices surged so much. The Naples Area Board of Realtors reports that the median selling price of a single-family house grew by 24.9% from August 2021 to August 2022, up to $725,000. Condominium prices increased by 34% over the same time.