Contact:
Jeff Zipper, Vice President of Communications
407/438-1400, ext. 2314
JeffZ@far.org
Marla Martin, Communications Manager
407/438-1400, ext. 2326
MarlaM@far.org
Editor's Note: In the aftermath of the four hurricanes that struck parts of Florida during the 2004 Atlantic hurricane season, the state's real estate market is showing strong signs of recovery from the home sale closing delays attributed to the storms' impact. Realtors across Florida report that business appears to be picking up again. Few owners appear to be bailing out of damaged homes and buyers' interest remains high, even in those areas hit hardest by the hurricanes, say Florida Realtors. Housing prices statewide are rising because demand remains strong and the inventory is even more limited. Most real estate experts don't expect the storms to permanently affect the value of Florida real estate. To attest to the Sunshine State's continued appeal for homebuyers, the Florida Association of Realtors® (FAR) is releasing the following four-part series of media releases.
Florida Real Estate Markets Rebounding from Hurricanes
ORLANDO, Fla., November, 2004 -- As Florida heads into the prime winter season, residential real estate activity is moving back to a normal pace in the state’s major metropolitan markets, according to Realtors® around the state.
While Hurricanes Charley, Frances, Ivan and Jeanne dealt heavy blows to localized coastal markets in August and September, Miami, Fort Lauderdale, Tampa Bay and Jacksonville were largely untouched.
“The Florida market has been strong, and remains strong, despite the hurricanes,” says Russell Grooms, 2004 president of the Florida Association of Realtors® (FAR). “We’re hearing very little concern from buyers about moving to Florida, and there is every indication that flow will continue.”
Those out-of-state buyers include Cliff and Barbara Reynolds, who got their first taste of Florida in September just before Hurricane Jeanne. “My wife has wanted to come to Florida for 15 years,” says Reynolds, a customer service agent with Southwest Airlines who transferred from Baltimore to Orlando in October. “We’re looking to buy a nice single-family home with plenty of space when the grandkids come to visit. I already love the weather in Florida, and this is the year when I’ll learn to play golf.”
Statistics compiled by the American Red Cross show 315,104 Florida residences, including single-family homes, mobile homes and apartments/condominiums, were affected by the four hurricanes, primarily in Southwest Florida, the Panhandle and the Treasure Coast region north of Palm Beach. Fortunately, for the state’s long-term economic health, serious damage to commercial properties also was confined primarily to those same coastal areas.
On a statewide basis, sales of single-family existing homes dropped 23 percent in September, according to FAR statistics, because most insurers do not write homeowners’ policies when a hurricane threatens. As a result, buyers repeatedly were unable to obtain coverage, which delayed closings.
Other issues facing potential buyers and sellers include the need for re-inspections of damaged properties, the process of filing insurance claims, difficulties in hiring contractors, and special assessments for damaged condominium buildings.
Despite the September market slowdown and continuing property damage issues, Grooms expects Florida’s residential sales for 2004 to be up about 15 percent over 2003 due to continuing strong demand.
“We don’t think the hurricanes will have much of a long-term impact,” says Phil Wood, president, John R. Wood Realtors, Naples. “Even after something as traumatic as 9-11, the market was only slow for about three months, then it picked up again. By the start of 2005, everything will be back to normal again.”
The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 120,000 members in 70 boards/associations.
© 2004 FLORIDA ASSOCIATION OF REALTORS
