New Reports Forecast Potential Damage in California Fires

Dec 08, 2017

The California Department of Insurance announced that it has seized the assets and legal control of Merced Property & Casualty Company

Two new data reports are highlighting the level of residential property damage created by the ongoing California wildfires.

In CoreLogic’s hazard risk analysis, a total of 86,242 homes in Ventura and Los Angeles counties with a combined reconstruction cost value (RCV) of $27.7 billion are at some level of risk from the Thomas, Rye and Creek Wildfires. Within that total, 13,526, or 16 percent, with an estimated RCV of more than $5 billion are considered to be at significant risk of damage.

Separately, Realtor.com Chief Economist Danielle Hale issued a report stating that the uncontained fires are spreading from less-populated to more-populated areas, which could increase the damages to the residential housing market in Southern California. Within a quarter-mile of the current fire boundary, there are 10,906 residential properties worth $7.7 billion, or just over $700,000 per home. Within a half mile of the current fire boundaries, there are 21,639 residential properties, worth nearly $14 billion, or just over $645,000 per home.

Hale also noted that housing availability was already tight prior to the fires, and the ability to supply housing after the fires are fully extinguished will be a major issue impacting the state.

In view of the fires, the Office of the Comptroller of the Currency (OCC) issued a proclamation allowing national banks and federal savings associations directly affected by the ongoing emergency to close. The OCC added that these branches and offices “should make every effort to reopen as quickly as possible to address the banking needs of their customers.”

About the author

Phil Hall

Link copied

Published

Dec 08, 2017

Analysis and Data

Homebuying Excitement Is Up Among Veterans

Survey results indicate optimism about housing market among U.S. veterans and service members

Our nation’s heroes are increasingly optimistic about buying homes, new research indicates. The amount of veterans and service members who plan to purchase a home in the next six months was up by 15 percentage points year-over-year, according to the Veterans Homebuying Re...

Diversity & Inclusion

NAF Releases New White Paper On Empowering Diverse Communities

Addressing the racial homeownership gap and recommending industry-wide solutions

The overall homeownership rate across the US stands at 66%, with notable differences among racial and ethnic groups. New American Funding (NAF), the largest Latina-owned mortgage company in the U.S., is taking steps to close that homeownership gap by addressing systemic obst...