A modest ranch-style home in Wyckoff, New Jersey, and a 6-bedroom behemoth in Miami, Florida, both hit the market with asking prices close to $1 million. The 4-bedroom home in New Jersey has a large kitchen island with a marble countertop and a custom garden. The Miami mansion is bigger by two bedrooms, has a pool and spa area, and a luxurious patio with an outdoor kitchen. The New Jersey home was listed for $1,095,000, garnering a flood of offers almost immediately. The new owners offered roughly $200,000 higher than the asking price to make sure they were the winning bidders. The situation couldn’t be more different for the home in Miami, which was listed for $999,999. After a month of absolutely no offers, the owners lowered the price to $990,000. So, what’s the difference? The simple answer is hurricanes. Florida has been hit with six major hurricanes, two of them Category 4, since September 2020. That has resulted in insurance companies more than doubling their homeowners insurance rates. Another factor that spooked prospective buyers is the fact that Florida law mandates inspections by qualified engineers, which means any structural deterioration repair costs will be the responsibility of the owners, trapping them in a no-win situation. Finally, the mass exodus happening all over Florida is another negative factor that discourages home sales.
