How Will The South Florida Real Estate Market Be Affected By A Hurricane?
July 6, 2008
We learned this evening that Tropical Storm Bertha may indeed strengthen into the first Atlantic hurricane of the season. The Atlantic-Caribbean hurricane season runs from June 1 to the end of November, with August and September usually the busiest months.
Tropical Storm Bertha strengthened a little on Friday as it spun in the open Atlantic Ocean far from land, forecasters at the U.S. National Hurricane Center said.
Bertha’s top winds grew to 50 mph (85 kph), up from 45 mph (72 kph) on Thursday, and forecasters said it could gradually strengthen further over the next few days.
It was expected to stay on that path for two or three days and then curve northwest on a track that would keep it over the open sea.
Energy markets closely monitor tropical storms in the Atlantic because of the potential for them to strengthen into hurricanes and threaten oil installations in the Gulf of Mexico.
Long-range computer predictions did not foresee Bertha making it into the Gulf of Mexico or anywhere near the U.S. coast. It was still more than 2,000 miles away from the easternmost Caribbean islands.
Hopefully this is not a preview of things to come.
Even if the Fort Lauderdale real estate market is not hit by Bertha, she’ll most assuredly have some impact. The degree of that impact is what we will have to watch closely.
Obviously a hurricane affecting the oil rigs in the Gulf of Mexico could send oil higher and gas prices higher but it is the real estate market, especially for sellers, that could slow even further.
When we get hurricanes here, it frightens some buyers. The uncertainty of insurance rates, the impact of the storm and the general anxiety associated with a hurricane can supress the Fort Lauderdale real estate market.
In the past, we have seen homes actually under contract not close because of hurricanes or simply the fear thereof.
However, if you are a buyer, watch carefully. If there are threats of hurricanes sellers will become anxious. Especially banks that are sitting on REO or bank owned properties. Banks hate liability.
The thought of adding renovation costs and increased insurance fees and clean-up expenses to a property wherein they have already taken a substantial loss on a defaulted loan doesn’t really endear the bank to its position of homeowner.
If we get an active hurricane season in the Fort Lauderdale real estate market, expect prices to drop even further, and suddenly.
These are the kinds of signs that prudent buyers and real estate investors look for. Real estate investing as with any investment requires the experienced and competent buyer to be shrewd and calculating.
Buyers, get ready, watch the storm tracks and check our searches for price drops by weary sellers and anxious lenders wanting to dump their bank owned homes as soon as possible. Have your financing in place as the deal will be snatched up quickly by others planning to capitalize on hurricane hysteria.
If you own a home in the Fort Lauderdale real estate market be safe and make sure you are prepared for hurricanes. If your house is on the market, make sure you have a plan to protect your asset. You want to make sure that if we get hit, you pull through as unscathed as possible and that your home does not meet the same fate as those who will be unprepared.
Don’t Fear Hurricane Season In the Fort Lauderdale real estate market - Be Smart Be Prepared
If you are homeowner in the Fort Lauderdale real estate market or anywhere in South Florida, the American Red Cross recommends the following hurricane preparedness actions:
Get or assemble a disaster supplies kit:
- Gather enough emergency supplies to meet your needs. A portable kit, stored in a sturdy, easy to carry, water-resistant container should have enough supplies for three days. The Red Cross also recommends having at least two weeks worth of supplies at home and to keep a smaller kit in the trunk of your car. Check your kit and replace the stock every six months. Whether you purchase a kit or choose to build your own, your kit should include:
- A three-day supply of water (one gallon per person, per day) and ready-to-eat nonperishable foods, such as tuna fish, peanut butter, crackers, canned fruit, juice boxes, etc.
- A manual can opener
- A battery-powered or hand-crank radio, flashlight and extra batteries
- A first-aid kit and reference guide
- Prescription and nonprescription medication items
- Copies of important documents, including birth certificates, insurance policies and social security cards
- Cash. ATMs and credit cards won’t work if the power is out.
- Special items for infant, elderly or disabled family members
- A change of clothes for everyone, including long-sleeved shirts, long pants and sturdy footwear
- One blanket or sleeping bag per person
- Emergency tools, including tools to turn off utilities
- An extra set of home and car keys
- An extra pair of glasses or contact lenses, extra batteries for hearing aids
- Pet supplies
Prepare a personal disaster and evacuation plan:
- Meet with your family to create a plan. Discuss the information you have gathered and why it is important to prepare for a disaster.
- Identify two meeting places. One right outside your home in case of a sudden emergency, like a fire, and one outside your neighborhood in case you can’t return home.
- Be sure to make advanced preparations for your pets. Be aware that pets may not be allowed in shelters. Contact hotels, motels, family members and animal shelters to see if they would allow pets in a disaster situation. Keep a contact list of pet-friendly locations. If you are asked to evacuate, take your pets with you.
- Choose an out-of-area emergency contact person. During or after a disaster, it’s often easier to call long distance, especially if local phone lines are overloaded or out of service. Family members should call this person and tell them where they are. Everyone must know your emergency contact person’s phone number and e-mail address.
- Tell your family about the Safe and Well Web site accessible at all times via www.redcross.org. The Safe and Well Web site is an Internet-based tool that allows those directly affected by a disaster to let their loved ones know of their well-being. People within a disaster-affected area are able to select and post standard “safe and well” messages. Concerned family members who know the person’s phone number (home, cell or work) or a complete home address can search for the messages posted by those who self-register.
- Show and explain to each family member how and when to turn off the water and electricity at the main switches. Turn gas off only if instructed by local authorities. Remember, if the gas is shut off, only a professional can turn it back on.
- Plan your evacuation route. Use local maps and identify alternate evacuation routes from home, work and/or school. Know where you are going and how you plan to get there before you leave home.
Be informed:
- Find out what types of disasters are likely to occur in your area and how to prepare for each.
- Find out how local authorities will contact you during a disaster. Listen to local media broadcasts or NOAA Weather Radio for the latest storm conditions and follow the advice of local authorities.
- Contact your local American Red Cross chapter for details about community disaster education presentations that may be arranged or are available in your workplace, school or community organization.
- Get trained in CPR and first aid so you will know how to respond to emergencies in the event that help is delayed.
- If you are told to evacuate, do so immediately. You may choose to evacuate sooner than alerted if you think you may need additional time.
Know what to do if a hurricane WATCH is issued:
- Listen to weather updates from your battery-powered or hand-cranked radio.
- Bring in outdoor objects such as lawn furniture, hanging plants, bicycles, toys and garden tools, anchor objects that cannot be brought inside.
- Close all windows and doors. Cover windows with storm shutters or pre-cut plywood.
- If time permits, and you live in an identified surge zone, elevate furniture or move it to a higher floor to protect it from flooding.
- Fill your vehicle’s gas tank.
- Check your disaster supplies kit to make sure items have not expired.
Know what to do if a hurricane WARNING is issued:
- Listen to the advice of local officials, and leave if they tell you to do so.
- If in a manufactured home, check tie-downs and evacuate as told by local authorities.
- Secure your home by unplugging appliances and turning off electricity and the main water valve.
- If you are not advised to evacuate, stay inside, away from windows, skylights and glass doors.
- Do not use open flames, such as candles and kerosene lamps, as a source of light.
- If power is lost, turn off appliances to reduce damage from a power surge when electricity is restored.
Unlike a tornado, we have plenty of warning to prepare for a hurricane here in South Florida. Take the time to ensure the safety of your family, your property and your pets. The impact of a hurricane can be greatly lessened simply by being prepared.
About the Author:
Robin Sing-Cunningham, is a real estate agent serving Fort Lauderdale and Broward County, Florida. Robin specializes in distressed and bank owned properties in the Fort Lauderdale real estate area.
Robin began her blog recently after over seven years in the real estate business. She brings a unique perspective to her writing as she has worked on the building and development side of the business and has worked extensively with investors on the foreclosure side of the business.
Robin is an avid sport fishing enthusiast and when not selling real estate can usually be found off the coast of Fort Lauderdale looking for that next big game fish.
She's also the wife of one of the hosts of the #1 real estate related talk radio show in America Real Estate Radio USA and occasionally makes appearances on the show to talk about Fort Lauderdale real estate and to lend her perspective on the industry.
You can contact Robin at 954-709-7461 or visit the Fort Lauderdale Real Estate Blog. You can also email Robin at robins@robinashley.com
Join us on Wednesday when we discuss these issues and the predictions of this hurrcane season with Dr. Gerry Bell, lead scientist for NOAA!