Palisades Real Estate: How long will it take to recover from devastating wildfires?

Palisades Real Estate Market According to industry economists, the area will be “stagnant” for some time as the fire rages and thousands of residents evacuate.

Daryl Fairweather, Redfin's chief economist, told Fox Business that the deal will be delayed until the full extent of the damage is assessed, but market movement will rebound for homes left intact.

“There may be some aftershocks for the next couple of weeks. But after the dust settles and the fire is out, I think the impacts are going to be very localized to just the affected homes,” Fairweather said.

California Wildfires: What to Take When Evacuating

As of 4 pm ET, Wednesday, at least four fires were burning across Los Angeles County. Zero percent of the fire is under control. officials told Fox News.

Additionally, more than 30,000 residents are under mandatory evacuation orders and hundreds of thousands have lost power. Governor Gavin Newsom declared a state of emergency, warning that the worst of the winds were expected between 10 p.m. Tuesday and 5 a.m. Wednesday.

Fairweather believes business will return to normal fairly quickly for homes outside the evacuation zone, even those right next to the damage that are still intact. He doesn't project these homes will have a difficult time getting a buyer, the area is so “sought after.”

In 2021, Redfin published a report analyzing areas directly affected by wildfires and found that the number of homes built increased by an average of 595% in the three years following the wildfires. In comparison, areas that fell outside the fire perimeter saw a 6% decrease.

Because the area is so valuable, he doesn't foresee a mass exodus from the area and believes redevelopment projects will begin within the year.

Christopher Anderson, a Napa, Calif.-based Redfin real estate agent, previously said that after a fire, “local authorities tend to fast-track permits and design reviews and push fire-damaged properties to the front of the line.” Communities can rebuild.

Watch live: Fire coverage on Fox Weather

He added that “they build houses within four to six months of a fire, whereas it would normally take a builder a year and a half to get a shovel in the ground.”

However, Fairweather said in Redfin's report that wildfires themselves make housing more expensive.

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“After a town burns down, builders come in and build new homes, which are usually more expensive. And homeowners who often invest in making their homes more fireproof, which increases property values,” he said.

Realtor.com Chief Economist Daniel Hale also noted the issue House and rental prices May increase in the near term as “homes on the market dwindle as homeowners put sale plans on hold to assess the damage and displaced locals seek temporary housing in the area.

But, “the long-term outlook will be more mixed, depending on how quickly rebuilding occurs and whether the desirability of an area outweighs concerns about a potential repeat event,” he added.

In fact, in a separate Redfin report, the real estate firm, reported that builders are confident that there is demand for remodeling in high-risk areas. In fact, according to an August 2021 Redfin report, more people are moving to areas at high risk of wildfires and other natural disasters linked to climate change.

In contrast, Jack Herceg, a licensed architect and Ballast's chief operating officer with an extensive background in property operations, says, “Buildings in dense, urban areas like San Francisco, CA, are safer long-term investments than suburban and rural areas that carry higher risk.”