Impact of Bad Weather and High Costs on New Home Sales
By Space Coast Daily // September 30, 2021
While many different factors affect the sales of new homes in each area, extreme weather conditions and high housing costs are among the most common. Hurricanes, tornadoes, earthquakes, drought, and heavy snowfall are among some of the reasons people stray away from certain areas to live. With that, the rising costs of new homes are not making matters any better.
In areas where bad weather is expected, houses must be built to last and endure the harsh conditions. Because of this, costs may be a little bit higher in these areas. However, this dramatically affects the housing market in more ways than just one.
For example, nobody wants to move to an area that’s likely to be destroyed by hurricanes, tornadoes, or earthquakes. Likewise, heavy snowfall or dry drought conditions are not desirable to all people either.
Due to the changing climate and extreme weather cases, there is starting to become less demand for homes near shorelines. Along with this, we are starting to experience a rise in insurance premiums, property taxes, and property values in some instances.
However, this isn’t stopping people from purchasing rental homes in these areas. But what should you consider before buying a home and turning it into a rental?
Here we will go over the current state of the housing market, the effects of weather on homes and home buyers, and how a property management team can help you with all of your rental home goals.
The Current Housing Market
As of right now, September 2021, it seems as though home buyers and home sellers are on two different pages. Many buyers these days don’t think it’s a great time to purchase a house. However, sellers are finding this the perfect time to put their homes up for sale.
Due to the pandemic and increasing weather damages from hurricanes and floods, people are becoming warier of the homes they would potentially buy. Buyers are looking for homes in secure areas in order to keep their families safe. However, the latest tragedies with Hurricane Ida and various flooding around the United States have made home buyers think twice about where exactly they want to live.
On the other hand, homes in rural and suburban areas are in higher demand, according to Forbes. There are a few key reasons why, including the pandemic and the surge of remote workers. When the pandemic hit, many businesses switched over to remote work, causing people to be home much more often. Along with that, many people lived in certain towns or cities for work purposes. Now that many have switched to remote work, they are looking for more affordable homes in rural or suburban areas.
As of right now, according to Space Coast Daily, it’s a seller’s market. With that, many sellers are taking this opportunity to put their home’s on the market at values that benefit them greatly. As more sellers follow this lead, it’s suggested that the market will start to correct and bring prices closer to current home values. Either way, there is enough demand for houses at this time that the market will most likely remain how it is while becoming more buyer-friendly.
Effects of Bad Weather
When it comes to purchasing homes, the area’s weather is one major factor that most people, especially these days, are taking into consideration. With the recent major weather storms, floods, and hurricanes, more people are starting to think about these things before purchasing homes.
When major storms and hurricanes hit cities, towns, and other areas, they typically cause a ton of damage. For example, Hurricane Ida created destruction to many homes over the course of just a couple of weeks. People who are searching for homes now are starting to take the weather patterns into consideration to avoid these devastating destructions.
Some of the most expensive home repairs include structural problems, roof repairs, and water damages. These damages are avoidable for the most part, but weather cannot be controlled.
Unfortunately, there’s not much you can do to fully protect your home from the overtaking of a tornado or hurricane. What you can do, though, is protect your home from smaller weather damages like heavy rain, snow, and storms.
To do this, you should periodically check your home for these signs of damage:
- Broken or missing shingles
- Leaking pipes
- Evidence of pest invasions
- Inconsistent water temperatures
- Dampness, moisture, or mold in your basement
To protect your home from damages year-round, consider doing the following:
- Maintain proper drainage areas around your home.
- Regularly inspect your home for any noticeable damages.
- Pump or clean out your sewer every couple of years.
- Address any leaks right away and watch for mold.
- Keep debris away from your HVAC unit.
If you decide to take the plunge and invest in a rental property, you may realize quickly that it’s a ton of work. Luckily, there are resources out there to help you with all the dirty work that goes into maintaining a rental home. For example, when you are first starting out and attempting to find tenants to occupy your property, your local management team is there to help you every step of the way.
Finding a professional management team is quite easy. Reach out to your local professionals and allow them to take the stress off your plate. They can first help you screen potential tenants and make sure they are good candidates for your property. Once you have established tenants, your property management team can help with collecting rent payments each month, maintaining the home, and taking care of necessary repairs.
Owning a home, especially if you turn it into a rental, can quickly become an unwanted full-time job, especially if you own more than one property. Nobody wants to constantly worry about their rental properties while also maintaining their own home and family. Reach out to your local professionals today and feel relieved by their low fees, expert management skills, and superior customer service.