Thursday, June 09, 2005

Tropical Storm Arlene: First of The Season

Tropical storm Arlene has form over the Gulf of Mexico. While it is still a weak storm with sustained winds of only 40 mph. It is the first tropical storm of the season. It is heading right for Alabama and Mississipi. Will this Hurricane Season be a contibuter to popping the housing bubble in Florida? If it is a bad season like last year then that is a very likely outcome.

8 comments:

  1. I heard that another bad season is forecasted.

    By October, the mood in Miami will be very different. "Why am I paying *that* much for this freaking place?"

    Another reason for the October demise of the housing market.

    ReplyDelete
  2. Intensity and frequency of hurricanes are irrelevant, its the STEERING that counts. I have hopes for a weak Bermuda high this summer! NC, watch out!


    I'm located at what was ground zero for Frances and Jeanne: Melbourne Beach.

    ReplyDelete
  3. So, let me get this straight: the hurricane goes and demolishes a bunch of houses in Florida, and they get cheaper?

    No... I think not. Think this one through. Supply and demand. The supply has gone down. Demand stays constant. Prices rise. If anything, the hurricane might _contribute_ to the housing bubble you predict.

    -DMZ

    ReplyDelete
  4. The supply has gone down. Demand stays constant.

    Yes, that's why the Bay Area experienced a RE boom right after the 1989 earthquake that destroyed home.

    ReplyDelete
  5. Oops. Sorry, SF actually had a downturn after that.

    ReplyDelete
  6. I heard the same argument after the last hurricane season, which by the way was one of the worst for Florida, but prices have continued to rise. If the bubble bursts, it will have little to do with the hurricanes.

    ReplyDelete
  7. A bad hurricane season may will reduce supply be destroying some houses. However, the bigger impact maybe on demand because people will think why shoul I pay all this money if every year I have to worry whether my house will be damaged or destroyed.

    ReplyDelete
  8. "A bad hurricane season may will reduce supply be destroying some houses. However, the bigger impact maybe on demand because people will think why shoul I pay all this money if every year I have to worry whether my house will be damaged or destroyed."

    Yes, because G-d only knows it's going to be THIS YEAR that causes them to think that. Forget it. If people were going to have pulled that line, it would have been last year, where we had a series of devestating storms.

    -DMZ

    ReplyDelete