Heavy rain to hit fire-ravaged Southern California, house values plummet

• Forecasters predicted heavy rain in fire-ravaged Southern California over the next few days. The consistent rain could lead to flooding and mudslides in areas scarred by the recent infernos.
• Homeowners weigh a tough choice, whether to stay and rebuild on their lot or sell at a steep loss.
• For some homeowners, insurance will only cover a fraction of the fire damage. Some don’t have any coverage at all.

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Forecasters predicted heavy rain for Central and Southern California starting Tuesday night, Feb. 11, which could lead to flooding and mudslides in fire-ravaged areas.

How much rain could Southern California receive?

Weather experts warned the upcoming storm will be the strongest of the season, with potentially life-threatening and damaging flooding. Downpours are expected from Wednesday through Friday.

Some areas, such as Los Angeles, are forecasted to receive close to two inches of rain. Large plots of burned-out land remain vulnerable to excessive water amounts too quickly.

To sell at a loss or rebuild?

Homeowners who survived the January wildfires are stuck with a tough choice: rebuild at a considerable cost or sell properties at a loss.

For example, a lot in Pacific Palisades where a four-bedroom house once stood and was once valued at $2.7 million on Zillow is now on the market this month for $999,000. The owner received 60 offers in 10 days, according to real estate experts who spoke with Newsweek.

By comparison, Redfin said the median home price in Pacific Palisades was $3.3 million at the end of 2024.

The Palisades and Eaton fires burned almost 6,400 homes. The vast majority were single-family.

Flames charred more than 12,000 structures in Los Angeles County.

What about insurance?

Some homeowners can count on insurance to help them rebuild. Others will only have a fraction of the cost covered by insurance.

Some have no insurance whatsoever.