Homebuyers search for housing deals in Florida among Hurricane Ian's destruction

Weeks after Hurricane Ian devastated southwestern Florida, home buyers and investors are looking for housing deals in the region known for its expensive housing market.

The demand for housing deals is coming from both locals and buyers from other states, according to residential real estate agents, who said that they have received several inquiries from people who are interested in purchasing property. 

“It’s pretty much business as usual,” said Kelly Baldwin, an agent for Coldwell Banker in Longboat Key, Fla. “I haven’t had anyone reach out who wants to stop their home search.”

Hurricane Ian, a category 4 storm, hit Florida in late September, causing widespread flooding and devastation in the region. As a result, many homes were completely destroyed or submerged underwater, causing between $40 billion to $64 billion in flood and wind losses to Florida residential and commercial properties, according to data by CoreLogic. 

For many, the costs associated with repairing the homes, and fortifying them against wind and flooding, along with the rising premiums of flood insurance, are enough to make them want to leave the state. 

Yet other buyers are seeking out these distressed properties and looking at them as an opportunity to buy prime real estate at a lower price.

Friley Saucier, a real-estate advisor at Premier Sotheby’s International Realty in Naples, told The Wall Street Journal he had a customer who was willing to spend up to $50 million on distressed properties. 

“He called me after the storm,” she said. “I’ve spent a week calling agents and others trying to find properties that are off-market because these homes are still being dried out and remediated, so they’re not yet listed.”

A study released in October found that the Cape Coral-Fort Myers metropolitan area was one of the nation’s most overvalued housing markets in August, with many buyers paying over 70% of the regular pricing trend. 

Housing analysts say that while the prices might be low for a while due to the devastation, they will increase in the short term. 

"We most likely will see an increase in prices almost immediately, driven mostly by continued strong demand and a storm-induced inventory shortage," said Ken H. Johnson, a housing economist at Florida Atlantic University’s College of Business.

"While pricing might be erratic for the first few months, the demand for living along a coastline with warm weather and a business-friendly economy seems to have led to quick economic recoveries after recent past hurricane strikes," said Dr. Johnson.