Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Hurricane Katrina And The Impact On Real Estate Prices


In the wake of Hurricane Katrina's wide path of destruction, the real estate market will be affected perhaps in ways not fully understood or expected. If recent hurricane recovery history holds true there will be several good things to come out of all destruction. Let's hope so as those who live in the Delta region have suffered immensely.

In September 1989, a strong category 4 hurricane by the name of Hugo made landfall in the Charleston, SC area. Up to that time it was the strongest hurricane to hit the U.S. mainland since Camille whacked the Gulf coast in 1969. The damage from Hugo was extensive with entire forests wiped out and fishing villages and seaside resorts heavily damaged. Dire predictions of the storm's negative effect on the local economy were made. I know, because I was living in the nearby town of Goose Creek when Hugo roared through; I witnessed a sustained and lengthy recovery effort for many months thereafter.

These were some of my personal observations of that hurricane's impact on the housing market:

1. Housing stock destroyed. Yes, the number of mobile homes, apartments, and single family homes damaged or destroyed by Hugo was large. What had been a fairly open pre-hurricane housing market quickly tightened up as the vacancy rate plunged to near zero as all available, undamaged property was suddenly snapped up. Rental rates, which had been on the low side, suddenly shot up and stayed up even as the housing stock was replenished over the next year. The net effect of Hugo was that older, substandard housing was replaced by more modern housing built with the latest building code requirements included. Rental rates rose accordingly to reflect the improvements.

2. Insurance payments. Although the property I was living in did not sustain much damage, some of the homes in our neighborhood did. Within days of the storm's wake insurance agents were canvassing neighborhoods, filing claims, and issuing checks on the spot. The quick move of the insurers allowed people to run out and make needed repairs quickly. Oftentimes, the amount of the check more than covered actual damage thereby allowing homeowners to make both structural and aesthetic improvements to their properties. These improvements were credited with fueling the subsequent surge in local home prices.

3. Government assistance. FEMA cut its teeth on Hugo. Originally, much criticism was levied FEMA's way because of the agency's slow response to the disaster. It took several more disasters after Hugo before FEMA's response time improved. Still, where private insurance companies left off, FEMA stepped in by cutting checks that allowed people to rebuild. Essentially, FEMA stepped in to help the uninsured or under insured recover. Plenty of homes that had been substandard before Hugo were replaced by homes that met current [and stricter] housing codes. The impact on the housing market was felt as this rising tide of support effectively lifted housing prices.

Every particular storm's impact on a local economy is different. Unfortunately for residents in the Delta region, Katrina blew through after a particularly rough hurricane year in 2004. No, FEMA isn't broke but the financial stress on insurance providers cannot yet be measured. Unlike with Hugo, where the recovery effort started immediately after the storm left, the Delta region is still in rescue mode and waiting for the waters to recede. I fully expect that it'll be weeks before any sustained recovery effort can be launched and even then it will be a long, drawn out process as insurance claims are filed, local building codes are re-examined, and the most important part - people - decide whether they want to rebuild in damaged communities or move away.

South Florida recovered fairly quickly after Hurricane Andrew devastated Homestead in 1992, but many central and panhandle communities in Florida are still reeling one year after a series of hurricanes tore up their homes in 2004. Again, much will depend on individual families willingness to rebuild and that is the untold story lying in the wake of Hurricane Katrina.

Matthew Keegan is the owner of a successful article writing, web design, and marketing business based in North Carolina, USA. He manages several sites including the Corporate Flight Attendant Community and the Aviation Employment Board. Please visit The Article Writer to review selections from his portfolio.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Wall Street Journal

The Bullies of Real Estate
Wall Street Journal
“Bullying is rampant among real-estate agents, but you see less of it among the top-performing agents. The most common form of bullying here is a passive-aggressive running of the clock, which usually happens when buyers and sellers are negotiating ...



Chron.com

Real estate briefs: MetroNational sells three office buildings
Chron.com
Houston-based MetroNational has sold three office buildings in deals brokered by Dan Miller and Trent Agnew of HFF. Houston-based S&B Engineers and Constructors, represented by Mission Asset Marketing, purchased a 155,118-square-foot building at ...



theberkshireedge.com

Welcome to Real Estate Friday!
theberkshireedge.com
What's on the Market – Fall Specials: A second installment of great properties at reduced prices! Transformations – Red House Design transforms an outdated Cape into an oasis of calm and modernity. Weekly real estate transactions for Berkshire County ...



Forbes

DJ Khaled Is All About The Real Estate
Forbes
After buying a $25.9 million dollar waterfront beach house in Miami, DJ Khaled decided to keep his fingers in the Florida real estate game a little longer by lending his name to a luxury listing in Hibiscus Island, Miami. He, not being a shy promotor ...



Forbes

Combining Traditional And Modern Real Estate Tactics To Survive Industry Evolution
Forbes
In a digitized era where agile business principles reign supreme, traditional commercial real estate principles are being tested like never before. There's no denying that technology has impacted and even disrupted all real estate asset classes ...



Reuters

China's real estate investment slows in September as caution sinks in
Reuters
BEIJING (Reuters) - Growth in China's real estate investment eased in September and home sales fell for the first time since April, as developers dialed back expansion plans amid economic uncertainties and as additional curbs on speculative investment ...

and more »


Forbes

New Investment Trap: Tapping Your Retirement Accounts For Real Estate Investing
Forbes
Lina: Yes, somewhere high on the list are bad actors promoting the purchase of rental real estate inside a tax-deferred retirement account such as a traditional IRA or 401(k). While this can be sold as a compelling strategy, it rarely ever is a good ...



Pensions & Investments

GWL acquiring Guggenheim Real Estate
Pensions & Investments
GWL Real Estate Advisors U.S. is acquiring real estate manager Guggenheim Real Estate from Guggenheim Investments, said Michele Walkau, senior vice president, corporate services for GWL Realty Advisors, in an email. Terms of the deal — which affects ...



GoDanRiver.com

Dan River Region real estate transfers
GoDanRiver.com
Recorded Sept. 17. » Wendy Ann Stone, Beverly Stone Jones (Beverly Denise Stone), Tracey Annette Stone, Barbara Allen Stone, guardian for the person and property of James Junior Stone and incapacitated adult to Buoy 10, Water Street, Old Ringgold ...



Forbes

Balancing Automation And Human Interaction In The Business Of ...
Forbes
The most successful individuals will utilize technology as a system of record and to assist with engagement, but also recognize when the human touch and ...

and more »

Google News

home | site map
© 2006 TIGER MEDIA