Home-Buyer Sentiment and Hurricane Landfalls

摘要

This study examines data from the Cape Fear region of North Carolina, an area wlth elevated hurricane risk, to answer the question: After a period of unprecedented hurricane activity, is the market forgetful or do elements of the market's fear of hurricane exposure become embedded in local prices? This article reports that home values and buyer sentiment are clearly impacted by storms and that the market recovers far more slowly following multiple hurricanes. Buyers and sellers seem to develop an aversion to the risks and are slow to become forgetful. However. In time, sentiment returns to normal, and buyers' willingness to buy Is restored.