Palisades Real Estate Market: How Long Will It Take to Recover?

Palisades real estate market The fires will stall for some time as the fires burn and tens of thousands of residents evacuate the area, according to an industry economist.

Darryl Fairweather, Redfin’s chief economist, told FOX Business that deals will be delayed until the full extent of the damage is assessed, but movement in the market will return for homes that were not damaged.

“There may be some concern in the next few weeks,” Fairweather said. “But after the dust settles and the fires are out, I think the impacts will only be very localized on the homes that were damaged.”

California wildfires: What to do when evacuating

As of 4pm EST Wednesday, there were at least four fires burning throughout Los Angeles County. Zero percent of the fires were contained. Officials told Fox News.

In addition, mandatory evacuation orders were issued for more than 30,000 residents, and tens of thousands were without power. Governor Gavin Newsom declared a state of emergency, warning that the worst winds were expected between 10 p.m. Tuesday and 5 a.m. Wednesday.

Fairweather believes business will return to normal very quickly for homes outside the evacuation zone, even those adjacent to the damage that are still intact. She doesn’t expect those homes will have a hard time getting buyers, given the area is “highly sought after.”

In 2021, Redfin published a report analyzing areas directly affected by the fires, finding that there was an average 595% increase in the number of homes built during the three years following wildfires. In comparison, there was a 6% reduction in areas outside the fire perimeter.

Since the area is very valuable, she does not expect a mass migration out of the area and believes that rebuilding projects will begin within the year.

Christopher Anderson, a Redfin real estate agent based in Napa, California, previously said that after fires, “local authorities tend to speed up the permitting process and design reviews, pushing fire-damaged properties to the front of the line” so Communities can rebuild.

WATCH LIVE: Wildfire coverage on FOX WEATHER

“They build houses within four to six months after fires, while it would normally take a year and a half for a construction worker to dig the ground with a shovel,” he added.

However, Fairweather said in the Redfin report that wildfires themselves tend to make housing more expensive.

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“After a city burns, builders come in and build new homes, which are usually more expensive,” she said. “Homeowners who stay frequently invest in making their homes more fire-resistant, which increases property values.”

As Danielle Hale, chief economist at Realtor.com, points out House prices and rents It could increase in the near term as “homes on the market dwindle as homeowners postpone sale plans to assess damage and displaced locals search for temporary housing in the area.”

“The long-term outlook will be more mixed, depending on how quickly we rebuild and whether desire in an area outweighs concerns about a potential repeat event,” she added.

In fact, in a separate report by real estate firm Redfin, it stated that builders are confident about rebuilding in high-risk areas because the demand is there. In fact, more people are moving to areas facing high risks of wildfires and other natural disasters linked to climate change, according to an August 2021 Redfin report.

Conversely, building in “dense urban areas like San Francisco, California, represents safer long-term investments than in suburbs and rural areas,” said Jake Herzig, a licensed architect with an extensive background in real estate operations and Ballast’s chief operating officer. Which constitutes an increase in investment. risk.”