Gulf Oil Spill is Gutting Home Sales Along Coast

From Houston, TX to Naples, FL the impact of the Gulf Oil spill is having a negative impact on home sales, even though very few beachfront communities have actually experienced oil landfall.  The fear that this or another oil spill could affect the beach is just another reason for potential homeowners along the Gulf Coast to stay away.

Clear Capital has been studying the impact of the oil spill and finds that it has depressed already low property values along a wide swath of the Gulf Coast and virtually halted sales.

The coast of Alabama through the Florida Panhandle, the area most impacted by the BP Oils spill, has seen the greatest impact on housing prices and sales.  Home sales in Mobile, Alabama fell 25% in June compared to a year ago.  Home values along the Alabama coast have fallen 5 to 15%.

Panama City, FL declined 32.5% in sales volume in June compared to the same time in 2009.  Before the oil spill Panama City was on the mend, seeing a 10.7% increase in sales for April compared to the same month the year before.

Even in unaffected areas such as Houston, New Orleans, Naples and St. Petersburg, home sales have fallen since the oil spill in June.  St. Petersburg home sales fell 8.8% compared to the previous June after several months where home sales were on the rise.  Similar stories are playing out throughout the Gulf region.