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I dunno, but I was surprised that property values stayed up in New Orleans after Katrina. My BIL lost his house in Chef Pass, but he sold what was left for good money. My MIL's home in NO East was severely damaged and before she rebuilt, she had several offers close to pre-storm prices (once you accounted for repair costs.). She elected to rebuild instead, despite being the only house still occupied (legally) on her block.

I bet prices will be okay post storm on most coastal properties, excepting those subject to, or possibly to, the Open Beaches Act. Most folks who build and live on the coast are aware of the risks. One factor that might have some influence is the availability of windstorm and flood. IMO, there are some areas where taxpayers should not underwrite the risk, namely, below 10' elevation within 1000' of a seaward tide line.

Developments like Grand Cay Harbour, which were well protected, or new developments where modern construction on the bayside or sound side held up well (Laguna Harbor) will likely go up a bit.

We'll see, tho'. Sometimes, there's just no tellin'....
 

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House values in new orleans actually went up incredibly after Katrina because there was such widespread devastation and a shortage of housing for those wanting to stay in New Orleans. Prices are now starting to level off and actually fall as with the rest of the country.
 

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chickenboy said:
Curious what you think will happen to property values in areas affected by Ike.
Depends on where you will be looking.

Areas on Bolivar where there are no homes, no power, no water and no sewer will lose a great deal of value.

Areas on Galveston or in other areas where the power grid and other utlities are stil there will see a drop in price in the short term. Once rebuilding starts there value will increase.

Insurance will be a issue.
 

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The storm will have less effect on property values, compared to the effect all of the forclosures and the mortgage inudstry failures will have.
 

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I've heard that the "investors" have already started moving in to scoff up the Galveston properties. I don't think there will be too much of a negative affect on prices. The people who could afford to buy on Galveston's west end before the storm can probably still afford to buy today regardless of the mortgage debacle.

Oh yeah, anyone want to buy a house? I'll be putting my canal house up for sail soon.

GY
 

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Real estate did not go down iin Florida after 4 storms passed thru the state 3-4 years ago. Read an article somewhere that it went up due to all the snowbirds that wanted to sell out.
 

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Florida and Alabama coastal properties are experiencing pretty high foreclosure rates and drop in value due in large part to increased property taxes and insurance rates. He owns a condo management company in Gulf Shores and tells me of condos that sold for $400,000 a couple of years ago that are on the block now for $160,000. Condo fees have risen and many are paying $1000 - 1700 / month - mainly insurance and taxes - on top of their mortgage payment. I'm sure that creative financing also has a hand in it and will make it worse.
 

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Property values of areas that recieved quite a bit of damage will drop in the short term, but within a couple of years people will rebuild and prices will go back up.
 

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I think you'll see a lot of really nice new construction replacing some of the older hoods that have nothing left but poles. Newer construction on concrete piles seemed to do pretty good from all the photos I've seen. I can imagine whole "less expensive" older constructed parts of the island being torn down and replaced with much more expensive new housing. In the end prices will sky rocket but the houses will be 10x as nice as the house they replace.
 
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