US Heading For $1 Trillion In Coastal RE Losses; T***p Is Only Going To Make Things Worse

[hatrack]

EDIT

Sean Becketti, the chief economist for mortgage giant Freddie Mac, warned nearly a year ago this scenario is coming faster than expected. “Some residents will cash out early and suffer minimal losses. Others will not be so lucky,” Becketti said. The country is facing a trillion-dollar bubble in coastal property values, a time bomb which has been inflated by U.S. taxpayers in the form of the National Flood Insurance Program. A 2014 Reuters analysis of this “slow-motion disaster” explained that there is nearly $1.25 trillion in coastal property being covered at below-market rates.

https://cdn-images-1.medium.com/max/800/0*dXZJfvLnBvbZeF8n.jpg

Even before Trump was elected, the process over devaluation had started. As the New York Times reported in November, “Nationally, median home prices in areas at high risk for flooding are still 4.4 percent below what they were 10 years ago, while home prices in low-risk areas are up 29.7 percent over the same period.” When sellers outnumber buyers, and banks become reluctant to write 30-year mortgages for doomed property, and insurance rates soar, then the coastal property bubble will slow, peak, and crash. As the New York Times article points out, it has already slowed or peaked in some places.

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All signs suggest the administration is going to let the bubble burst — or even facilitate it. A leaked, draft White House budget document for NOAA zeroes out the $73-million Sea Grant program, which funds university-based research and “has been an outsized leader in coastal adaptation,” one scientist told Climate Central.

The Maryland Sea Grant Extension has been conducting “outreach and research to help coastal communities prepare for the effects of sea level rise and coastal flooding.” The Rhode Island Sea Grant program helps coastal dwellers fortify their homes against extreme weather. These kinds of programs give investors and homeowners confidence that coastal property will maintain its value. These programs appear to be ending. So here’s the question for coastal property owners and financial institutions who are witnessing team Trump keep his coastal-destroying promises on a daily basis: Who will be the smart money that gets out early — and who will be the other kind of money?

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https://thinkprogress.org/trumps-policies-will-wreck-coastal-property-values-before-sea-level-rise-does-b3ac326ebfb6#.uwbyby35d

[mackdaddy]

1. On another post, they are talking about paying for the border wall with an extra flood ins fee ???

Not that any of this makes any sense.

I think the US government is going to have to start buying up these ocean front properties, or just stop insuring them all together.

Some things you just can't stop, once you started them.