The “Redneck Riviera”, the oceanfront properties running from Louisiana over to Florida’s northwestern coast had been a booming area until the Real Estate Meltdown…
Property values are currently running up to 65% below their 2005 peak.
The oil spill, expected to impact the beaches in many of the areas will further devalue properties – possibly forcing thousands of foreclosures as people find themselves sitting on vacation properties worth only 5-15% of what they paid for them.
Homes along the immediate path of the Gulf Coast oil leak are forecast to decline at least 30% in value as a result of the environmental catastrophe produced by British Petroleum’s gushing oil well 42-miles off of Louisiana, according to a new forecast by Housing Predictor.
The forecast is being issued after more than a month of research and monitoring the impact of the oil leak, which has poisoned the eco-system along the marshes of the Louisiana coast line and as far east as Alabama. Housing analysts contend that the projected losses in housing value will top that of any oil disaster in the nation’s history and will send tens of thousands of additional homes into foreclosure as a result.
The forecast covers the states of Louisiana and Mississippi, and does not yet include other states along the Gulf coastline. The projection includes immediate waterfront properties and will be updated as the direction of the massive oil blob becomes more definitive.
The area is also the most densely populated to be struck by an oil disaster since the 1960’s oil leak in the U.S. along the Pacific coastline near Santa Barbara, California . The Gulf Coast has seen an incredible increase in population in recent years. The beautiful white sandy beaches in Florida may be devastated by the toxic BP oil catastrophe, presenting an economic and environmental disaster of epic proportions, devastating an already fragile housing market.
The Gulf Coast has been heavily impacted by the nation’s housing crisis with homes and condominiums along most of the immediate coastline deflating an average of 65% from the markets peak during the real estate boom. The forecast 30% in additional declines from current levels in housing values is for the immediate vicinity of the current oil leak, including areas of Louisiana and neighboring Mississippi, expected to be heavily impacted by the disaster.
The Gulf Coast is one of the country’s largest second home vacation markets with millions of waterfront condominium units, many of which were built and sold during the boom, including developments in Alabama and Florida. Oil from the gushing BP well has not yet reached the Florida panhandle , but local residents are worried about the strong possibility of it reaching their beaches.
Should BP oil blacken the beaches of Florida’s coastline, the environmental impact and long term economic pain for the area is projected to run into the billions of dollars since Florida is so dependent on the tourist industry. Losses are expected to be in the billions of dollars alone for the $40-billion summer tourist season with hotel operators already reporting cancellations of up to 70% for summer bookings, and the oil has not yet even come close to the Sunshine State’s white sandy beaches.