The nation watched as the Los Angeles Pacific Palisades wildfires erupted and completely destroyed the area this week.
In the late hours of a January morning. On the 8th, the fires were “0% contained,” according to the LA Fire Department, and extremely strong winds “fueling multiple out-of-control fires” resulted in at least two deaths, the New York Times added.
The LA enclave is loved by celebrities including Tom Hanks, Ben Affleck, Mark Hamill, Spencer Pratt and Heidi Montag.
In January. 7, fires destroyed Pratt and Montag’s home, while other A-listers, including James Woods and Eugene Levy, had to evacuate, along with more than 30,000 residents.
However, despite the dire news and the state of the area’s wildfires in 2024, the California Association of Realtors predicts that the state’s housing market will grow in 2025.
Indeed, the report shows a 10.5% increase in single-family home sales, while predicting median home prices to rise 4.6%.
However, that doesn’t mean selling a home in an area prone to frequent fires isn’t without its challenges.
For buyers, events like the Pacific Palisades fires can be a strong deterrent despite the highly desirable location of many of these homes.
So what does this mean for sellers who are eager to leave and start fresh in a less risky place?
If you live in a fire zone, it makes sense that you would want to leave
In 2024, there were more than 62,000 fires across the county, which burned more than 8,851,142 hectares, according to the Global Fire Monitoring Center.
The news is, admittedly, a mixed bag.
“This is below the 10-year average for the number of fires, but significantly higher than the average for acres burned — by nearly 2 million acres,” according to the report.
In California alone, fires burned more than 1 million acres in 2024, and as we’ve seen, 2025 is off to a deadly start.
But with demand increasing, all hope is not lost in unloading a property. If buyers are doing their homework, such as consulting area fire maps, they may be convinced that the purchase is worth the risk.
“For many buyers, especially in high-demand areas like Malibu, the risks are weighed against the lifestyle benefits,” says Daniel Cabrera, founder and CEO of Fire Damage House Buyer.
For example, he said while some are deterred by rising insurance premiums and the threat of future wildfires, others are willing to pay a premium for location and amenities.
“It’s often about educating buyers about risk mitigation strategies, like home hardening and fire-resistant landscaping,” Cabrera adds.
The Challenges of Selling a Home in a Fire Zone
That’s not to say that selling a home in a fire zone isn’t an uphill battle. Lower property values, rising insurance premiums and risks of losing everything can dampen enthusiasm and make buyers very hesitant – no matter how desirable the location.
“Homes in fire zones can scare some buyers like me because of all the risks and unknowns,” says Charissa Bright, owner and founder of Georgia-based Bright Buys Houses. “Places like Malibu, CA, still attract people willing to pay extra for the lifestyle.”
Stay up-to-date with NYP’s coverage of the devastating wildfires in the LA area
In addition to high insurance costs and fewer loan options, she explains that real estate agents can avoid commission.
Fewer buyers, strict credit requirements and disclosure of fire hazards make it very difficult to highlight what makes a property attractive.
In fact, many states require sellers to disclose if their home is in a fire zone. In California, for example, they must find out if their home is in a “very high severity fire danger zone,” which includes areas currently battling wildfires like the Palisades fire, says Max Dugan-Knight, climate data scientist at Deep Sky.
“This requirement will make it more difficult to sell homes in these areas, especially since a buyer may struggle to secure home insurance,” he says, adding that many buyers will hesitate if they anticipate problems with home insurance. At the same time, banks may be less likely to underwrite a mortgage.
Which areas in the country have the highest fire risk? Let’s look at the map
Not surprisingly, the 15 most fire-prone metros are in the western United States. Of those, 10 are in California, according to CoreLogic data.
Additionally, in 2024, 5.5% of homes in the nation were considered at severe or extreme risk of fire damage, according to the Realtor® 2024 Climate Report. Additionally, 39.1% of these high-risk homes (worth 1.7 trillion dollars) were in California.
Realtor.com also notes that LA has the highest total value of homes at severe or extreme fire risk. Meanwhile, Colorado Springs, CO, tops the list in terms of the share of property value at risk.
Know before you go
With all that said, there is actually a high demand for real estate in these high-risk areas.
On the one hand, homeowners in fire-prone areas may be eager to sell their homes and limit their exposure to any future risk of fire damage, as properties that are at high risk of fire damage is increasingly difficult and expensive to insure, says Hannah. Jones, Realtor.com’s senior economic research analyst.
“Both of these forces can contribute to making homes more affordable in fire-prone areas,” Jones adds.
She notes, however, that interestingly, previous research found that prices have risen faster in high-risk areas, indicating “high demand” for these risky homes, perhaps driven by their relative affordability. .
But if there’s one key takeaway for both buyers and sellers, it’s this: Do your research.
Check if your home is really in a fire zone before worrying about the value. Consult fire maps to confirm whether your dream home is at risk of being destroyed by the elements.
Fortunately, there are several tools that buyers and sellers can use to evaluate fire zones. For example, Realtor.com displays fire risk information for homes and communities on its site.
The tools enable buyers to view fire risk on interactive maps and find fire risk information for most properties on the market.
The information includes a fire factor rating based on a property’s cumulative fire risk over the next 30 years.
It also shows information from the US Forest Service, which compares fire danger at the county level to national averages.
Finally, Bright Buys Houses’ Bright recommends that if you’re looking to buy a home in a fire zone, in addition to using fire hazard maps, talk to local zoning offices and hire an inspector with knowledge of fire safety to check the property.
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Image Source : nypost.com