Foreclosures causing Prices to Tumble in Mississippi Gulf Coast

Foreclosures are causing prices of condos to tumble in Mississippi Gulf Coast – falling to staggering low levels. Many projects are hanging unfinished in mid air. Many of the investors have walked off from the properties that have gone underwater. But realtors are now busy again to make sharp profits while prices are at record low levels.

The types of buyers coming in today are changed with less number of investors. More people are keen on the condos as their primary units of residence and also vacations houses. The agents of Louisiana are observing that the locals are eager to settle again into second houses in Harrison County (west).

Tashia McGinn a realtor of Beau View condo in Biloxi said, “Real estate is such a valuable commodity if you can pick it up at the right price. If you have the money to buy, it’s the right time to buy. The cost of construction right now would be double the cost of a unit.”

Condos that generally used to sell of $400 per sq ft are now being sold for $220 a sq ft. At Beau View there are still 30 units remaining unsold in a complex containing 112 condos. Beau View has been spared too many foreclosures but future plans for building more condo towers have been kept on hold until the market stabilizes.

Carlene Alfonso working for Coldwell Banker Alfonso Realty Inc. noted that some of the agents were not releasing the correct figures and holding back some details from the MLS so that prices cannot be further lowered by the investors and evaluators. In other condos the prices are much lower. Alfonso observed, “There are a lot of foreclosures, but they’re being bought up quickly. Most of these are cash sales. There are investors out there who are buying foreclosures because the prices are just unbelievable.”

Another opinion is that apart from foreclosures the condo scene has totally altered since the lashing of Hurricane Katrina. Initially the tumult had pushed off the buyers. Prior to the hurricane it was not difficult to find buyers for condos because of the growing housing bubble.

The president of Gulf Coast Investment Developers Inc. Mike Boudreaux said that his group did not have to make efforts to book condos because the condos were less costly than those in Florida. Another plus point was the annual inflow of tourists thanks to the casino culture. But after the catastrophic stork of 2005 August the sales figures were blown away by the winds.