Do nearby forest fires cause a reduction in residential property values?

Linear and semi-log hedonic property models identified a statistically significant decrease in property values in a town that was 2 miles from a major wildfire that burned 12,000 acres, and destroyed 10 houses. The house price drop in the unburned community is about 15%. This suggests that home buyers and sellers appear to revise upward their perceptions of fire risk after a major fire as well possibly reflecting some loss in forest amenity value in the broader geographic area surrounding the unburned town. These factors combine to reduce the desirability of living in the forest, reducing house prices.