1. In the aftermath of Hurricane Ian – many Snowbirds and recent Northern transplants – will decide the Sunshine / Hurricane State is not for them – and will decide to sell their Florida homes – short term result – more listings – decreased demand – lower prices
2. The number insurance companies willing to offer homeowner insurance in the Sunshine State will continue its rapid decline – recently 6 companies declared insolvency – and are in the process of winding down their operations in FL – these policies now revert to Florida Citizens – the government run insurance facility of last resort – which is already stressed to the max – and now faces unprecedented payout obligations – the gravity of this situation can not be over stated – Florida is looking down the barrel of a gun – where private insurance may no longer be available – in some not so distant future – but to be fair – other States like California are facing the same dilemma – albeit for a different reason – wildfires vs hurricanes – bottom line – the insurance market outlook in Florida is bleak
3. The vast majority of financial experts – believe the US economy will be in a full blown recession in 2023 – this will push real estate prices across the country lower – including prices in Florida
To sum it up – we tell Clients – the biggest roller coaster ride – in the State of Florida – is not located at Universal in Orlando – rather it is the Florida real estate market – whose prices have behaved wildly over the last 100 years – big swings up – big swings down – this time will be no different – BUCKLE UP – we are now on the down cycle – BUT – at some point in the future – this will lead to a huge buying opportunity – welcome to the Florida real estate market !
Map of Florida Wind Borne debris regions used by insurance companies for rating purposes
