Gulf Coast Real Estate

How is this oil flow going to effect the real estate from Texas to the Keys? I bet the banks have leveraged and lent out some serious money along this coast This is a high rent district for about 1200 miles. When you think about the high end hotels, condos, homes, land, marinas ect. Not to mention all the local business that counts on all the above. Lots and lots of very big mortgages along with businesses that are already hurting. Might see people walk away from their obligations..........again. Cant say I would blame them, with the threat of your main attraction turning into a oil pit and all. Hope banks can handle this......smells bad. 

Any estimation of the damage to real estate values would be huge... I cannot think of what the number should be.  I think you could easily swag that this crisis instantly shaves a good 20% off property values (now because of the uncertainty).  If this turns out worse than all fears, that could be high as 60%, or if it turns out negligable then the damage is something much less.

Either way, I don't think real estate is a very good investment these days.

here's an article claiming 10%

then mid article

“It could be 20 percent in some areas,” Sterbcow said in a telephone interview. “Every day I’ve had to revise my numbers negatively.”

link

There is no such thing, as bad news, for TBTF banks (all those who deal in mortgages for US property now)

BOL