Scores of Floridians are getting a crash course on the Federal Emergency Management Agency’s (FEMA) 50% rule governing rebuilding homes after Hurricane Ian. And for many, the FEMA rule is an unpleasant, problematic surprise after all of Ian’s damage and traumas. The 50% rule dictates the future of hurricane damaged homes in designated flood zones. The federal rule prohibits repairs and improvements on damaged homes exceeding 50% of their market value unless the entire residential structure is brought up to the most current building codes and flood regulations. Basically, if the repairs to a home damaged by Ian are greater than 50% of its value (not including land value), homeowners are compelled to rebuild at current codes and elevation requirements in coastal and other flood zone areas. Rebuilding could entail more complete tear downs and new construction of elevated and more expensive homes built to current codes and flood rules rather than repairs of existing older homes.
Source: Florida Realtors Association
Mortgage Rates Slow Their Upward Trajectory
The 30-year fixed-rate mortgage continues to remain just shy of seven percent and is adversely impacting the housing market in the form of declining demand. Additionally, homebuilder confidence has dropped to half what it was just six months ago and construction, particularly single-family residential construction, continues to slow down.
