Gulf of Mexico Oil Spill

The BP oil spill has been an egregious setback in our recovery process. Gulf Shores and surrounding areas have had a difficult time finding stability in a volatile marketplace. The ill-timed disaster seemed to arrive at our most vulnerable time as the area geared for the 2010 tourist season. A year later, much has happened to facilitate growth in numerous markets as we approach the end of 2011. It looks to be a great year for those considering buying local real estate as the prices are again those of 2003.

Sometimes a certain measure of disaster can be beneficial in the "big picture" and, in this, new growth immerges. I give the example of hurricane Ivan for perspective. As a result of the subsequent destruction the storm had on our area, older condominium complexes were devastated making room for new more well-built construction. In the "big picture" this allows the insurance institutions comfort and flexibility to offer reduced premiums. Insurance is a huge economic influence as we saw with hurricane Katrina; it effected the entire balance sheet of investment property ownership and caused the decline of value and today we still feel the repercussions with our investment worksheets.

The oil spill has had an amazing impact on our area in terms of pricing. The majority of condominium owners depend on rental income to offset the expense of ownership. When the oil spill kept occupancy numbers at an all time low, many investors decided to sell and flooded the market with listings. This decreased the value of real estate and in doing so created a lot of opportunity for those looking to purchase investment property. With the summer and peak rental income approaching, now is a great time to consider gulf front investment property ownership. Click on upcoming links for information on condos for sale in Gulf Shores or Orange Beach condos for sale