Housing-News-Report-May-2016

H OUSING N EWS R EPORT Named the Nation’s Best Newsletter in 2015 by the National Association of Real Estate Editors N ightmare onMain Street Part II: WhenNatural Disaster Strikes Home

By Octavio Nuiry, Managing Editor

On Aug. 23, 2005, the hurricanes at Pat O’Brien’s — the famed French Quarter watering hole — were flying off the bar. Few in the Sportsman’s Paradise had noticed the formation of small tropical depression germinating in the warm Atlantic Ocean waters that summer. Everyone in the Big Easy was enjoying life and letting the bon ton roulette (the good times roll). Meanwhile, meteorologists at the National Weather Service in Springfield, Maryland, were tracking the small storm twirling in the Atlantic near the Bahamas — dubbed Tropical Depression 10 — slowly heading north west towards Miami, Florida.

— set the odds of Tropical Depression 10 turning into a catastrophic hurricane at a 100 to 1 chance. Everyone at Nature’s casino had placed their bets. All the experts agreed: the likelihood of a monster storm that destroys $100 billion in insured property happens only once every hundred years. But the weather bookies got it wrong; they got it wrong big time. Six days later, Hurricane Katrina slammed into the Gulf Coast on Aug. 29, devastating coastal Louisiana and Mississippi with ferocious winds, record storm surge and catastrophic flooding. Katrina, which killed 1,836 people, displaced another 400,000, and caused $135 billion in damage, was not only the costliest hurricane in U.S. history; it was the costliest natural disaster in the world, according to a National Weather

May 2016 Volume 10 • Issue 5

CONTENTS

10 Client Corner:

Foresight Information Services

11 Big Data Sandbox: 7 Reasons Homes Still Underwater

Nature’s Casino

In New York City, weather odds-makers — meteorologists, statisticians, oceanographers and mathematicians

12 My Take by

Joseph Melendez, Founder and CEO ValueInsured

Continued Next Page

14 News Briefs

16 Financial Briefs

17 Book Review:

“Detroit Resurrected,” By Nathan Bomey

SOURCE: National Centers for Environmental Information

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