Effect of Wildfires in the California Real Estate Market
The recent wildfires in California are not unknown to anyone around the world. A major part of Napa and Sonoma was left in ashes. Thousands of people have lost their houses, apartments, and condos in the wildfires and they will have to find a new home to live in. Approximately 6,000 homes have been completely destroyed in seven counties as a result of the fire.
The prices of homes have been on the rise for quite a while now and it can be really difficult for people to find a new home for themselves. The death toll continues to rise and so far, there have been more than 60 reported deaths out of which 23 have been in Sonoma County and 22 from the Tubbs fire. 7 people lost their lives in Napa County and 4 people died in Yuba County.
The weather of the county is being termed as the reason why the fire grew and caused so much damage. However, at the same time, light winds and increased moisture provided help in extinguishing the fire, otherwise the damage could have been devastating.
Due to the damage caused by wildfire and thousands of people losing their homes, the prices of the real estate market have increased drastically within the region despite the sudden increase in demand. The demand has increased regardless of the increase in prices. However, the economists are of the view that people are very scared and they would want to vacate the area to avoid further disasters of the same nature in the future. This would reduce the prices of the homes in the coming few months.
No prediction can be made about the future of the real estate market in California. The wildfires resulted in 421 buildings completely destroyed with another 66 partially damaged. The current prices of the median homes in San Francisco have been around $1.5 million and average one-bedroom apartments are available for rent for $3,000 per month. These prices are also expected to increase regardless of the increase in demand. According to statistics, there had been a shortage of homes in California even before the wildfires affected the region. Now, when more than 6,000 homes have been destroyed, people are wondering what is next for them. All the neighborhoods are completely destroyed and there are so many seeking to be rebuilt.
It is not just the real estate sector that has felt the wrath of the wildfires but the wine industry as well. Wine worth millions of dollars was destroyed which will have a great impact on the economy of the country.
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