Realtor Blog
Navigating New Waters: The Impact of Florida’s Flood Disclosure Bill on Real Estate
In a groundbreaking move, Florida has introduced its first flood disclosure bill, aiming to shed light on the flood risk and history of properties in the state. This legislation represents a significant step forward in transparency, ensuring buyers are informed of potential risks before making one of the biggest investments of their lives.
Florida’s susceptibility to flooding is well-documented, with more homes at risk here than anywhere else in the country. Yet, surprisingly, the state has lagged behind others in requiring flood risk disclosure. The new bill, pending Governor Ron DeSantis’s signature, is set to change this, offering a beacon of hope for enhanced consumer protection.
This legislation mandates sellers to disclose any flood insurance claims or federal aid received for flood damage, marking a pivotal shift towards greater accountability and awareness. While critics argue the bill doesn’t go far enough compared to more stringent laws in states like Texas, its unanimous passage through the legislature underscores a collective recognition of the urgent need for action in the face of increasing flood risks due to climate change.
The support from both political sides and industry stakeholders like Florida Realtors indicates a broader acknowledgment of the inevitable impact of severe weather conditions on the state’s real estate market. The bill’s introduction is seen as a victory for both consumers and realtors such as myself, aiming to mitigate future disputes by equipping buyers with crucial information to make informed decisions.
However, the path to comprehensive flood risk disclosure is just beginning. Advocates and environmental groups stress the need for further legislative strengthening to close existing loopholes that may allow sellers to withhold critical information. The ultimate goal is to foster a real estate environment where transparency and safety go hand in hand, protecting both the investment and well-being of Florida’s residents.
As we look to the future, the rollout of this legislation could be a game-changer in how Floridians approach real estate transactions here along the Atlantic Coast, the Gold Coast or along the Emerald and Forgotten Coasts of Northwest Florida. By prioritizing flood risk awareness, we not only safeguard property values but also enhance community resilience against the challenges posed by climate change. This bill is a commendable first step, setting the stage for more robust protections and fostering a culture of transparency that benefits all parties involved in the Sunshine State’s real estate market.
In conclusion, while the journey towards comprehensive flood disclosure in Florida is far from over, the passage of this bill marks a significant milestone. It reflects a growing consensus on the importance of climate resilience and the need for informed decision-making in the face of natural disasters. As we move forward, it will be crucial to build on this foundation, ensuring that all Floridians have access to the information they need to navigate the complexities of real estate in a state renowned for its beauty as much as its vulnerability to the elements.
Home Market Trends on St. George Island – December 2022
In our first report, we wanted to separate fact from all the hype and doomsday proselytizing we’ve been hearing to truly reveal how the home market on St. George Island has been trending since the historical anomaly of 2020 that resulted from the COVID-19 pandemic. As the adage goes, “All real estate is local”. What happens in Las Vegas or Miami or Tampa or even Tallahassee for that matter, doesn’t reflect the market here on the island. Numbers tell the story: we’ll look at a history on sales prices, at the time properties remain on the market for sale, and how close to the listing price do properties sell.
This island has always had a strong second home market that has resulted from a strong rental demand. With the pandemic, this demand has increased even more due to the desire for vacationers to get away from the maddening crowds of other vacationers piled on top of each other at the more popular vacation destinations. Now, with many of the vacation destinations damaged or destroyed along the Ft. Myers coast, it’s not much of a stretch to see another bump in demand in the coming years…
One housing market indicator is the number of days on the market (DOM) before it sells. So far this year, the average DOM has been 77 days – approximately the same as last year, 2021. Graph 1 shows a recent tendency of shorter time on the market; this is an indicator of a robust market.
Another indicator is the sale price of homes relative to the original listing price. As shown in Graph 2, tracking data from the RAFGC MLS over the course of the past nine months, the sale price of homes on St. George Island has remained at a healthy 95%. This average tracks well with last year’s average of 96%.
Another meaningful market indicator is the progression of home sale prices since the COVID-19 pandemic. Local MLS data reveals that, despite increasing interest rates and the fear of an impending recession nationwide, home values remain strong here on St. George Island. Overall, home values went up 50% from 2021-Q1 to 2022-Q3. A better analysis of this data requires comparing the same quarter from successive years to account for seasonal variations in the home market.
In comparing the first quarters of 2021 and 2022, we see home prices increasing by 30% whereas in comparing Q2 and Q3 of the same two years, we see home prices increasing by 11% and 13%, respectively, proving that the home market here on St. George Island remains strong and vital coming behind the pandemic.
WHAT ARE THE TAKEAWAYS FROM ALL THIS DATA?
- The housing market on St. George Island continues to be strong despite increasing interest rates and fear of recession.
- Sellers should expect their property to be on the market for 9-10 weeks on average if competitively marketed.
- Unlike the stock market, homes are considered a real asset and as such, as inflation continues an upward trend, so does the value of your home.
If you are interested in selling, or mildly curious as to the value of your home, please contact us for a comparative market analysis of your home’s value. We will also provide tips on how to market your home as competitively as possible to get the most value out of your home. It’s all FREE!
Byrd Team Introduction
Welcome to the Byrd Team
We are Alan & Debbie Byrd, a spousal team of realtors with Anchor Realty Florida here on St. George Island, Florida which is off the coast of Apalachicola along what is known as the “Forgotten Coast”. We moved to the island four years ago and we love it enough to share our knowledge and experience with this area’s real estate market in the hopes you will find your second home, vacation or an investment property that will will fulfill your dreams as well. If you have a home to sell, we can deploy our knowledge and skillset in the use of social media and videography in a unique and compelling way to grab the interest of buyers and investors of real estate in our area.