Effect on Real Estate Markets post floods.
As one might expect there are some negative outcomes following floods. After doing a literature search about the effect of floods on real estate markets, the conclusions of articles and surveys are ambiguous and at times contradictory.
It appears that you need not be too concerned about your property and house value. Some articles suggest that values may drop initially but the market corrects sometimes as quickly as a few months. This also has a lot to do with the extent of damage and actual threat to human lives. Despite the damage that we have seen in Muskoka it is still considered relatively low to moderate. In addition, one article suggests that Canadians and Australians typically are not worried about flood risks like their American counterparts.
I think that each owner should consider their location and extent of this years damage. If you’re having to sell, relocate or to consider remortgaging it might be helpful to speak with a qualified agent who understands Muskoka Real estate well.