Monday, July 25, 2011

A Year Later, Gulf Coast Real Estate

When the Gulf Coast oil spill hit occurred in 2010, the potential effects of the tragedy were broadcast around the world.  One of the many areas to be hit by the spill was the real estate market along the Gulf Coast.  Analysts speculated that the real estate market would experience a prolonged slump as the oil slick moved steadily toward coastal shores, taking a deep environmental toll on the once prime vacation destinations.  This was important to note in the Vanderbilt prospect research shop, as we had to start considering the financial impact that the disaster may have on many of our donors with real estate in the Gulf Coast area.
I was recently researching articles on the current state of Gulf Coast real estate to find out how the market has fared in the aftermath of the oil spill and if analyst predictions had rang true.  Below are two articles that provide two opposing viewpoints, although one was published in Febraury 2011 and the other in July 2011.  I welcome you to read each article and submit your thoughts and any further findings that are pertinent. 
Trulia, the real estate guru website, provides sales volume and median sales price changes in various locations on the Gulf coast.  They also report on foreclosure activity.
Posted on Housing, author Mike Colpitts reports that his research found the gulf oil spill to have an average of a 15% decrease in home values on the Gulf Coast along with an increase in foreclosures.

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