2022 saw an increase in Florida foreclosures. WFLA News Channel 8 states that the foreclosure rate increased by 71.26 percent since 2021.
Florida ranks high nationally in foreclosure rates. The state is seventh overall and second in total foreclosure starts from the past quarter.
Hurricane Ian’s effect on prices
Foreclosure numbers decreased by four percent during August and September this year, compared to a three percent national increase. However, Hurricane Ian will dramatically increase housing prices. Forbes reports that homeowners can expect the value of their homes to increase up to four percent across the board.
Florida residents tend to stay
Though this might be good news for current homeowners, future buyers must contend with the increased cost. Forbes notes that most people who live through hurricanes do not move from their neighborhoods. The result is that with a decrease in supply from the storm’s destruction comes an increase in demand.
Insurance costs are on the rise
Another factor is the increased cost of insurance. Florida’s home insurance costs almost three times the national average. Six insurance brokers declared bankruptcy this year, leaving the Florida Insurance Guaranty Association (FIGA) to pick up the costs. FIGA is not a charity organization, though. It raises funds by increasing the premiums on Floridians’ policies.
Even if you live in the panhandle and did not directly feel the effects of Hurricane Ian, expect an indirect effect in the coming months and years. Foreclosure rates are almost at a pre-2020 level and will likely continue that way in 2023. Pay attention to interest rates and insurance costs, and plan accordingly.