Hurricane Season is Here

Unfortunately, the 2006 Atlantic Hurricane Season has officially begun. The pain and suffering that hurricanes cause is tragic. I hope that this hurricane season will be very mild.

Skyrocketing, Hurricane insurance premiums are already financially squeezing many homeowners in the hurricane zone.

The skyrocketing rates and the hassle of dealing with the effects of living in a hurricane zone are putting a damper on housing prices. As we move towards the heart of hurricane season prices in hurricanes zones are especially vulnerable to price declines.

How many flippers and specuvestors will be buying in the sunshine state (FL) during the coming months given the following:

• Rents don't come anywhere near to covering carrying costs
• Housing prices are declining
• Inventory is exploding
• Hurricanes are brewing

We know that that 'investors' were a very high proportion of the housing market last year especially in Florida. As investors become net sellers of housing units the inventory will continue to explode [especially for condos].

In bubblicious Florida, and in other bubble markets located in hurricane prone zones, the 2006 hurricane season, is very likely to further housing price declines that are already a reality.