They're estimating $1 billion in fire damage in California. Is that pre-housing

[grips]

market crash prices or post?
i mean, they really look like some nice homes going up in flame out there. Someone must be doing well in this economy.

[Mele Kai]

Don't laugh. Disaster's like this mean your insurance rates go back up. As in required Automobile policies, every thing under the umbrella folks like State Farm cover. Market value? Few have ever paid for the maximum coverage anyway. These homes will never be replaced. But, as is in nature, they will re-build. So the economy, construction wise will bounce back somewhat. Doubtful any of the homes start at the price paid get replacement cost. But... it is California.

[dude4?]

Yeah, the houses outside of the city areas, where there is all this "brush" and fire hazard - those are extremely expensive. The reason such nice houses go on them is because the land is so expensive. If you're going to spend $800,000 on the land for your house, are your going to drop a $150,000 house onto it? No, you'll want a a house that reflects how much you spent on it. So a lot of those properties are over a million dollars. The market "crash" hasn't impacted as much as they make it out to be either. It just means people aren't making millions doing nothing but buying and selling houses anymore. And an unlucky few have ended up having to sell their homes for less than they paid. But overall it's still insanely high for houses in CA.

[libsticker]

Pre--- always over estimate, never under estimate, cut your own throat on funding...... The Liberals in California know that rule from earthquakes, floods, and previous fires.

[Johnny 2 Times]

Many people are doing well financially.

Are you not?

[Loyal B]

Neither. It is replacement cost..how much will it cost to repair the damaged, destroyed buildings to put them back into the condition before the fire.

[Dave]

Look down the road at what is going to happen to the housing market.

Lets say a house in California is worth $500,000. $150,000 of the value is the lot, $350,000 is the house. (This is a low figure, many homes burned were worth a million.) Now the owners came back and find it all gone.

What do you think they are going to do?

Stay there in a dumb RV or FEMA provided trailer for a year or two while they compete with everyone else in rebuilding their homes? (You can bet wood and cement prices are going to suddenly take a big leap in the next month or so.)

Or are they going to take their $350,000 and go shopping for a new home. Expect a sudden rise in housing sales. And a rise in prices once again as those who lost their homes start a bidding war to buy what is available in the area they live or in Nevada, Oregon, Washington or elsewhere so they can just get away.

As far as lot prices, they will want to get rid of their lots. Expect the lots to be sold for around 60-70% of their actual value as the owners will just want to get it all over with.

Of course, with so many homes and businesses destroyed, the tax base for some of the counties is really going to suffer. So expect them to stop being so loose with their money.

Who knows, they may actually stop giving benefits to illegals.

[captain_koyk]

That's the beginning bid in the insurance industry's negotiations to get the American taxpayer to foot the bill

[The President]

This fire will save thousands from foreclosure! I wonder if this is Bush's idea of saving the economy.