NEED TO KNOW - MORTGAGE INFORMATION

Home Owners:



Additional Information:

Louisiana Real Estate Market: When will Home Values Return?

Just when you thought the real estate market in Louisiana couldn’t get any worse, the BP oil spill occurred. Now, some experts estimate that the property values among Gulf-shore properties will experience a 10 percent decrease over the next three years. How will your Louisiana home’s value fare in the midst of all these disasters?

The Collateral Damages from the BP Oil Spill

When one, large segment of the Louisiana real estate market experiences a blow of this magnitude, it will surely have a ripple effect on the Louisiana real estate market and home values throughout the state. How much disaster can any one state take? Just ask Louisiana.

Many real estate experts predict that home values for southern Louisiana will fall anywhere from 5 to 15 percent over the next 12 months as a result of the BP oil catastrophe. In fact, some anticipate property values dropping by a whopping 20 percent in some areas during the same time period.

A Spike in Foreclosures Expected

In addition, many real estate professionals in Louisiana estimate that the Gulf oil spill will likely result in more foreclosures, given the deep impact this environmental disaster will have on the economy. Analysts in this region expect a loss of nearly $4.3 billion along the coastline between Louisiana and Florida.

In May 2010, 1,733 foreclosures were filed in Louisiana; a jaw-dropping 84 percent increase from the same time last year. Perhaps the only bright spot to this number is that it was 6.3 percent lower than April’s numbers. Many of the foreclosed homes were from New Orleans, an area that is still struggling to regain its economy after the 2005 hurricane.

Examining the Total Losses to the Region

Some Louisiana officials project that the damages to the Gulf coast region could total upwards of $100 billion – significantly more than the $20 billion BP has set aside to cover the economic losses due to the oil spill.

If you own a Louisiana home, the Fiserv Case-Shiller Index estimate that Louisiana will see a return to its original 2007 peak home values during the first quarter of 2014. However, it is important to note that these numbers were published before the Gulf oil spill. The numbers released by Fiserv Case-Shiller next year may tell an entirely different story.

10 Largest Cities in Louisiana