Realtor.com recently released research and analysis on the impact of 2017’s natural disasters on the country’s housing market. According to realtor.com most areas saw a delay in– or disruption–to an estimated 18 to 32 percent of home sales in the month of the disaster.
The website compiled data on seven different events including California wildfires and Hurricanes Harvey and Irma. They looked at when an event hits, what does it look like with online searches for homes? They found that it did hinder sales and demand in those local markets. About one in four sales were delayed or disrupted.
The information from realtor.com is based on expected sales or page views, anticipated sales or page views for the month if no disaster occurred. Estimates are based on previous month’s actuals and account for seasonality.
Here’s realtor.com’s research on four events:
Southern California Wildfires: December sales not yet available. Realtor.com page views were 2 percent lower than expected.
Northern California Wildfires: Approximately 900 lost home sales, sales 18 percent lower than expected. Views were 2% lower than expected.
Hurricane Irma: Approximately 9,700 lost sales, sales 32 percent lower than expected. Views were 15 percent lower than expected.
Hurricane Harvey: Approximately 3,700 lost sales, sales 24 percent lower than expected. Views were 6 percent lower than expected.
Short-term, there is no question impact includes shrinking inventory and sudden higher demand on rental properties with rising rent prices. For the long-term, the impact doesn’t seem to last. People know the inherent risk of buying homes in areas prone to wildfires and hurricanes and continue to buy there. To learn more about natural disaster effects on home sale or to purchase investment real estate, contact 9 Core Realty today!