Or will prices go down because buyers are scared off by future storm risk/insurance costs?

^this. Storms are going to get worse, and I wouldn't buy or build near the coast.

I think just as many people think the storm of the century just happened and the chances of it happening again in xx years is slim.
Ocean front/near the beach will always be desirable- while a portion of people will leave there is no shortage of new buyers wanting their shot at beach living.
Otherwise Florida would be out of business.

I'm with cearbhaill on this one. Sandy was supposed the "perfect storm" and not likely to happen again for a number of years.

December 21, 2012 is approaching very rapidly, so I doubt any of this really matters.

Of course I am joking..........or am I?

:)

As long as you can get insurance for property shouldn't matter much.

Since it's a condo, my understanding is that I only need to get insurance for the interior of the unit. Of course, as the overall insurance for the building gets more expensive, the HOA fees will rise.

I'm just trying to predict what kind of counter offer the bank is likely to make if the short sale is approved. I'm hoping the storm will impact prices negatively, at least short term.

Who knows what will happen, though.