Hurricane IRMA Aftermath: What Next For SW Florida Real Estate?

Except for piles of debris that will be removed in the coming weeks and months, some commercial signage that needs to be repaired, and the occasional palm tree that is pushed askew, for the most part you would never know a Category 3-4 hurricane roared directly through here on September 10. The impact from Hurricane Irma on the Southwest Florida real estate market will not be fully known for several months.

As expected, the event substantially affected the month of September. Residents evacuated in large numbers, many businesses were without power and had to remain closed for prolonged periods, and real estate closings scheduled to occur during the month had to be delayed. The result was that closings in the Naples, Bonita Springs and Estero combined market were down 35% for the month when compared with September 2016, and Marco Island closings were down more than 50%. In the coming months, we will carefully monitor data on all listing and sales activity by area and price range to help us fully understand the impact of the storm based on specific segments of the market. 

I am optimistic. At the time of this report, all signs point to a busy season. Car carriers are unloading cars daily. Buyers are arriving daily and making purchases, and many winter residents are completing clean-up to their property and preparing them for the market. Restaurants and other businesses are back in full swing, and traffic is heavier than a month or two ago.

The fact that there was, with few exceptions, virtually no structural damage to homes, but instead we saw landscape damage and damage to pool cages, has actually spurred buyers to pull the trigger. Credit that to stronger building codes in the wake of Hurricane Andrew in the early 1990s. That quality is translating to assurance for buyers.

Further, the infusion of Federal and private insurance monies continues to pump life into the market. People need homes but, just as importantly, a new demographic is going to have the money to "move up." Investors are smart folks -- for the most part. Many who saw what happened after Andrew, and even in the year 2006 following Wilma, will jump at the opportunity to invest.

We have a vibrant stock market, national unemployment under 4.5 percent, and we live or own in that slice of Paradise everyone wants.

If you are considering buying or selling a property in Southwest Florida, it would be my honor to assist you!