How does CV-19 & FIRE affect Housing?
With everything that we have been hit with in the past year with pandemics and now what everyone is calling early fire season. Housing must be hurting right?....Wrong!
Housing was poised to be stronger in 2020 and the pandemic and recession have not hurt us and the fires are not putting a dent in the market either.
The housing market was strong before the pandemic and then during the pandemic it was problematic to physically see homes and so the market really slowed down in March and April but it came back stronger than ever when people could go out and look at homes again.
I am guessing here but I feel like the pandemic got everyone feeling trapped in their homes and needing to bust out. People were at home making plans and if you were trapped in an apartment, you found yourself wanting to get out and into a bigger place. Maybe you were feeling like you did not like certain aspects of your home and you needed a change.
The pandemic brought extra layers of tasks for homebuyers and Realtors and lenders and escrow companies and definitely for appraisers. Buyers used to be told that they should get pre-approved before looking at homes and now they can’t get an appointment to see a home unless they are armed with a pre-approval letter. Buyers now need to prove that they can work in this new pandemic economy and sometimes we have to put people on hold until we can get a solid income back on the table.
The other thing that is driving this hot market is that people who live in expensive housing in the bay area have figured out that they can work from home and home might as well be in wine country or simply out in the suburbs where they have more room at better prices. Some people are looking for a second home but many who are paying high rents are simply moving further out.
Then come the fires and being declared a disaster. The biggest issue here is the appraisal and the homeowners insurance. Many insurance carriers will not issue policies while the county is in a state of disaster. Lenders are handling things differently as well. I just closed one yesterday and we had to take time and date stamped photos of the front, back, side and street scenes of the house and we needed to get the buyers to sign a document stating that they understand they are buying a home that is in an active disaster area. I printed out the fire maps showing the home on this map and where it is in relation to the fire and the evacuation areas.
People are amazing and resilient and they are determined to go after what they want and right now there is pent up demand for housing and rates are really low and that is a recipe for a hot housing market. These huge issues that the market is facing seem to be just obstacles for people to get around but it is not slowing them down or stopping people from buying.
Be good to each other out there.
Need to know more? Please send me your real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.
Addendum :
Federal Aid Programs for the State of California For those who have lost or have damages property::
https://wildfirerecovery.caloes.ca.gov/past-fires/november-2018-fires/fema-aid/
After the Fire or Disaster: Dealing with Your Insurance Company
If you lose your home to a fire, the standard homeowners insurance policy will cover the cost of damages. Just make sure you report the loss as soon as possible. You'll want to get in touch with your agent or broker and file a claim right away.
More info here:
https://www.nolo.com/legal-encyclopedia/dealing-with-insurance-after-disaster-29640.html
Homeowners Insurance Basics
https://www.iii.org/article/homeowners-insurance-basics
Guidance to disaster-impacted property owners who want to buy a replacement home instead of rebuilding the one they lost.
If your destroyed home was insured and in the State of California, you have the right to collect benefits that would have covered rebuilding, and use those benefits to buy a replacement home.
https://www.uphelp.org/pubs/buy-or-rebuild
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