Hurricane Michael could cause $13.4B in property damage
Destruction from Michael's storm surge and flooding has potential to affect 57,000 homes, with a worst-case total of $13.4 billion in reconstruction cost value, according to CoreLogic's latest estimates.
The mortgage delinquency rate fell to a 12-year low of 3.52% in August. However, the impact from Florence and the pending damage from Michael — along with the storms to follow — have yet to be accounted for.
"Hurricane Michael is a massive storm that could bring total devastation to parts of our state, especially in the panhandle," Florida Gov. Rick Scott said in a press conference. "The storm surge is absolutely deadly. Do not think you can survive it."
Delinquency and foreclosure rates will be compounded in the coming months. In 2017, the delinquency rate hit the year's apex at 4.71% in December. Like a year ago, the housing markets devastated by this season's storms will likely be on the mend a year from now.
The Florida Panhandle is "an incredibly vulnerable spot," Jamie Rhome, a storm surge specialist at the National Hurricane Center, said in a press release. "Regardless of whether the track moves a little to the left or the right, or wobbles, it's going to be a bad storm surge event for somebody."
Michael is expected to hit Florida's Gulf Coast on Wednesday, with a projected status of Category 3 at landfall. A Category 3 has sustained top winds of 129 miles per hour and is the first classification of a major hurricane.
Gov. Scott declared a state of emergency in 35 counties and called for all residents to evacuate if the order comes.