Hurricane Harvey brought devastating wind and flooding to the east cost of Texas.
However, recent reports show that the real estate market was already in downward slump before this storm hit.
Houston’s pre-storm foreclosures had increased by a shocking 67 percent. National foreclosures had actually decreased by 21 percent, according to Attom Data Solutions.
Some homeowners are even walking away from their properties entirely, leaving their mortgages and flood-destroyed homes behind. The majority of the exodus is comprised of people without insurance.
“The Houston housing market was already showing signs of distress even before Hurricane Harvey hit. Hurricane Harvey will mean even more distress in the Houston housing market over the next year or two, although it may take some time for that to show up in the foreclosure numbers given the foreclosure moratoriums in place,” said Attom Data Solutions’ economist Daren Blomquist.
“Based on sales data that has come in for August so far, we are projecting a 27 percent year-over-year decline in Houston home sales in August. By comparison we are projecting a 2 percent increase in Dallas.”
Over the next few months, Blomquist predicts that there will be a sharp increase in the number of panicked owners putting their homes up for sale.
In mid-2017, home sales in the Houston area had increased by 7.4 percent from 2016.