Oil spill uncertainty impacts coast real estate market - WLOX.com - The News for South Mississippi

Oil spill uncertainty impacts coast real estate market


By David Elliott – bio | email

BILOXI, MS (WLOX) - Real estate broker Ray Gonzales sat at his computer Monday looking at the latest sales figures, while also keeping an eye on the oil spill in the Gulf of Mexico.

"How much is that oil going to affect us? We'll have to see," Gonzales said.

Real estate trends usually take months, even years to reveal concrete data. But it appears as if the spill is already producing some negative consequences.

"We have had several people cancel or postpone trips down here to look at homes because of the possible oil contamination."

And Gonzales said there is another by product of the uncertainty surrounding the spill. Development could be stymied by lenders unwilling to provide venture capital.

"They'll back up. They're going to make sure that this is cleaned up before they open banks for developers."

Gonzales said the timing couldn't be worse. The coast is still recovering from Hurricane Katrina and the recession.

Copyright 2010 WLOX. All rights reserved.

Powered by Frankly