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BP Spill Affects Coastal Property Values

August 26, 2010

As would be expected, coastal property values are taking a hit due to the oil spill off the Gulf of Mexico. This is for the 600 mile stretch of coast from Louisiana to Clearwater FL. It is estimated that property values will decline by at least 10% over the next 7 years. The number of real estate transactions has dropped off to almost nothing in these areas, and is not expected to recover at all until the oil is cleaned off the beaches and shores. Not only that, but the deals that were already under contract before the spill are all falling apart too. Buyers are not willing to take the risk of buying beachfront property in the spill area. Also, the market there was already depressed from the downturn in the economy. In 2005, average price per square foot was $400, and it had already dropped to less than half that before the oil spill.

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