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Prediction: Gulf Home Values to Dip 10 Percent


Daily Real Estate News  |  August 5, 2010  |   addthis_pub = 'rmostaff'; addthis_logo = 'http://www.addthis.com/images/yourlogo.png'; addthis_logo_background = 'EFEFFF'; addthis_logo_color = '666699'; addthis_brand = ''; addthis_options = 'delicious, digg, favorites, facebook, fark, google, reddit, magnoliacom, newsvine, furl, yahoo, technorati, twitter, icerocket'; document.write(' Share
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A Housing Predictor forecast based on three months of research says properties in Alabama and Florida on the Gulf Coast likely will see home price declines of 10 percent related to the BP oil spill, which would be significantly less than expected by many economists.

Florida and Alabama have started aggressive TV advertising campaigns to counter
the negative media coverage over the crisis at the height of the tourism season

Given that home and condo buyers are expected to avoid the area due to concerns about the environmental impact of the oil spill, experts believe the losses will last for a couple of years.

Although most beaches on the Florida Panhandle have not been affected by the oil, which -- except for globs of oil and tar balls -- has been kept offshore, buyers have been scared away. The oil spill came at a time when the Sunshine State already was suffering from high unemployment and foreclosure rates.

To help struggling borrowers in the Gulf Coast region, Freddie Mac, Bank of America, and Wells Fargo are offering relief, with Freddie Mac permitting servicers to suspend mortgage payments for certain borrowers for up to a year.

Source: HousingPredictor, Mike Colpitts (07/27/10)

© Copyright 2010 Information Inc.
Published Friday, August 06, 2010 2:57 PM by KRAIN - Residential and Commercial Real Estate

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