November 21st, 2012
Location has always been a factor most buyers take into consideration, but it may play a larger role in the future.
In the wake of Hurricane Sandy, many would-be buyers who were seeking homes on the water are reconsidering these options, and instead looking for homes in areas that are less prone to costly natural disasters, according to Insurance Journal. In addition to wanting to protect their investments from storm damage, some are also factoring in the potentially high insurance costs of living in high-risk areas.
Mike Montalbano is seeking a buyer for his three-bedroom home in Tom’s River, New Jersey, but said he is having trouble given its location and reputation as a hard-hit area that was affected by Sandy, the Journal reports.
“A lot of people are scared to come back to the water,” Montalbano told the news source. “Back in the day, everybody wanted to come to the shore. Now it’s a mess down here.”
Experts say that while mortgage consultants can expect to see a spike in the number of displaced people seeking new homes, there may be a large shift away from coastal regions and toward inland areas.