Properties in the Gulf are Expected to Lose More Value
The BP Gulf oil spill is claiming another victim in the US. Property in the Gulf is now another big loser in the mounting losses over the spill. The Gulf once held the largest area of secondary vacation homes in the nation. Now those properties are expected to lose their property value by an estimated 30 per cent.
In addition to the loss of property value in both personal and commercial properties, it is expected that tens of thousands will end up going into repossession of their property. Beach front homeowners are complaining of the smell as well as the tar balls and crude oil littering their property. All of this is on top of the loss of value that occurred during the housing crisis. It is estimated that many properties lost 65 per cent of their value in the crisis and they are facing a possible additional 30 per cent. Currently BP is planning to attempt a 2nd cap process to try and contain more of the oil spill. The true fix will come when the relief well reaches the blown out well. That is expected to happen in late August or early September.