BP's Latest Victim: Coastal Real Estate

Half million dollar beach houses are going unsold and rapidly losing value as the oil slick -- and fears -- spread.

1 minute read

June 23, 2010, 1:00 PM PDT

By Michael Dudley


In the Gulf states, where more stringent rules on mortgages resulted in lower foreclosure rates after the housing bubble, a new threat has emerged in the form of tar balls and dead and dying wildlife. Sales of coastal real estate is drying up, and existing homeowners may be facing foreclosure as the economic impacts of the spill spread. According to the Globe and Mail,

"As oil rigs shut down for at least six months and industries ranging from fishing to tourism wrestle with an uncertain future, real estate agents wonder how long out-of-work fishermen, oil rig workers and tourism providers can keep making mortgage payments. If they stop paying their bills, foreclosure rates could march higher. Prices may fall as banks auction properties to make back what little money they can.""

The paper quotes a real estate analyst who believes there may not be enough money to compensate the losses.

Thanks to Michael Dudley

Wednesday, June 23, 2010 in The Globe and Mail

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