Housing Stats for the Mississippi Gulf Coast are the effected by the Oil Spill?

Hello Gerard

I believe the oil well damage is far down the list of influencing factors on decreasing home sales on the Mississippi Coast.  This may change down the road, but for now, not so much.  Here are some factors I think are more influential:

•1.        Cost of housing.  The coast was not immune from the housing bubble that swept the rest of the nation.  Since 1998, house prices on the coast had gone up at least 50% by 2007.

•2.       Cost of insurance:  Insurance has risen beyond affordable and is now so high that banks are starting to require insurance quotes to determine DTI for many closings.

•3.       Over building.  The shortage of homes after Hurricane Katrina brought in many developers eager to take advantage of some tax incentives and rising prices caused by the house shortage.   Their labors have been coming to light in the past two years in the form of high number of apartments and too many high priced subdivisions.

•4.       High unemployment.  Four years ago it was at 5%, now over 9%.

•5.       Tighter lending requirements.  Banks are no longer offering many of the exotic loans that were very popular for people tight on money and long on house wants.  Standards are returning back to the old days of 20% down and many households on the coast can barely live without a job for a month let alone come up with the large down payment.

•6.       Fear.  People are apprehensive to buy as they believe prices may drop lower or they may lose their job.  Both are valid.

•7.       Tax increases.  Every level of government, from the Federal to the town, are raising taxes and fees (ghost taxes) rather than reducing spending.  This nickel and diming of coast residents is having a significant impact when added up and is reducing a coast consumer's buying power.

•8.       Wage deflation.  Wages have been static at best (except government employees) and for many, have actually gone down.

•9.       Easy credit.  Too many coast residents carry significant revolving credit balances.  Resources that could be used to increase cash circulation on the coast are now being devoted to paying creditors.

•10.   Oil

As time progresses, oil may very well move up the list but at this moment, I do not see it being anything more than an excuse for some folks to try and make up lost value for the first nine reasons I listed.

Thanks for letting an average consumer put forth an opinion.

Kindest regards,

Harry

I loved finding your stats for 2007-2011 may and june.  Any chance you can direct me to a link where I can fill in a chart for 2007-2011 Jan-Dec?  I need all the numbers.  I need the website for validation of information as well.  Thanks!  You're the best!