BP Spill May Cost Gulf Coast Homes $56,000 Apiece in Value

[dipsydoodle]

Source: Bloomberg

Gulf of Mexico coastal homes may lose as much as $56,000 each in value as buyers shun areas marred by the worst oil spill in U.S. history, according to CoreLogic Inc.

Waterfront properties in Gulfport, Mississippi, face the biggest average declines, followed by those in Mobile, Alabama, and Pensacola, Florida, the real estate data company said in a report. Losses along the coast may total $648 million in 2010 and $3 billion over five years, CoreLogic estimates.

The disaster threatens to wipe out the premium Gulf Coast homebuyers paid for ocean views and water access. BP Plc’s efforts to staunch the oil may not be enough to stem a drop in property prices, said Mark Fleming, chief economist of Santa Ana, California-based CoreLogic.

“It’s not only about whether the oil arrives,” Fleming said in a telephone interview from Vienna, Virginia. “There’s evidence something as catastrophic as this scares people away.”

Read more: http://www.bloomberg.com/news/2010-08-02/gulf-coast-homes-to-lose-up-to-56-000-in-value-as-bp-spill-spoils-beaches.html

[DCBob]

1. Give it time.. values will rebound..

if they can afford to wait and there are no more gushers.

[MineralMan]

2. No doubt. But, I also imagine that values will recover as the

BP disaster fades into a bad memory. The economy is a far bigger drag on property values there and everywhere else. Still, oceanfront property will always be desirable for those with the resources to afford it.

People may be scared now, but that will end soon enough. It's bad news, though, for anyone needing or wanting to sell property now.

[Kolesar]

3. Second homes, subsidized by publicly-funded beach restoration projects

I am not too concerned.

[Lightning Count]

4. They're all second homes?

?

[justabob]

5. nice

Yeah, no one but millionaires have houses on the Gulf coast. Fuck 'em.




do I really need a sarcasm tag?

[riskpeace]

6. They're not all second homes.

And many places pay for the renourishment projects with bed tax dollars collected from visitors.

Also, people who live in coastal counties pay federal income tax. Are we entitled to beneficial projects funded in part with federal tax dollars?