In Jacksonville, FL, homebuyers often inquire about flood risk, but it virtually never causes them to back out, said local Redfin real estate agent Heather Kruayai. Sales of high-flood-risk homes rose 18.6% year over year in the first quarter-about double the 9.6% gain in sales of low-flood-risk homes. Places that are prone to flooding are also seeing stronger growth in home sales. Redfin and other real estate websites have started sharing property-level flood risk data online to help house hunters determine if the homes they’re interested in are located in flood plains and whether they should purchase flood insurance. Places with high flood risk are also often home to large concentrations of retirees, many of whom don’t see climate change as a threat they need to worry about in their lifetime. This may be because buyers aren’t aware they’re purchasing a home in a flood plain or just don’t view it as an immediate danger. “While flood risk is intensifying in many parts of the country, it doesn’t seem to be a deal breaker for a lot of homebuyers. “Americans are buying the beach houses they always dreamed of because they have the flexibility to work from wherever they want,” said Redfin Senior Economist Sheharyar Bokhari. That premium surged during the coronavirus pandemic, when many wealthy homebuyers started eyeing oceanfront or lakefront houses outside of major cities. Since 2013, homes with high flood risk have sold for about 7% more than homes with low flood risk on average, likely because many of them are luxury waterfront properties. That means high-risk homes sold for a record 13.6% premium-up from a premium of 10.1% in the first quarter of 2020 and a premium of 7.2% in the first quarter of 2019. The median sale price of homes with high flood risk was $402,010 in the first quarter, compared with $353,783 for homes with low flood risk. That’s double the premium we saw before the pandemic. The typical home with high flood risk sold for $402,010 in the first quarter-a 14% premium over the typical home with low flood risk.
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