For the sake of not rocking the boat, let’s put aside the question of what is causing climate change and simply acknowledge that a change is occurring. The fact of the matter is that sea levels are rising, global temperatures are increasing, and those two factors combine to make major storms a normal part of life. Since boarder-line cataclysmic-storms have become a way of life, it is important to investigate how that impacts the housing market in at-risk areas, coastal cities in particular.
Some experts believe that Hurrican Ida was the manifestation of the fact that we have entered an era where the impact of climate change is accelerating, and we can anticipate seeing new flood zones develop. Putting aside the fact that our flood zones are based on 50-year-old assessments, new flood zones would have a drastic impact on a market that is already speculative in nature (e.g., if people think your home is in a flood zone, the value of your home will plummet), we have entered a new era where considerations of future natural disaster take a more prominent role in our decision to purchase a home for our family.
Growing up, we all understood that a house on the beach was the height of luxury; now, those homes may see a steep decrease in value – nobody wants to pay top dollar for a home that will be underwater in twenty years. Simultaneously, people will pay more for homes that are further away from the coast; this author is willing to bet money that once the experts have decided just how much coast will disappear from rising ocean levels, property values of the “new-future” coastal areas will skyrocket.
In order to protect your investment now, it may be prudent to get additional reports showing your home is not located in a high-risk area; it’s only a matter of time before would-be buyers demand that information anyways. Staying ahead of the curve is never a bad place to be.
At the Chernov Team we understand that knowledge is power, and knowledge of the changing world around us, and how it impacts the real estate market, is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.