Actually the whole "bubble" foolishness burst with Katrina - housing demand is now ever higher.
"Actually the whole "bubble" foolishness burst with Katrina - housing demand is now ever higher."
It is amazing how many people can't comprehend that simple logic.
I agree with you. I think with Katrina housing demand is high, as will be materials etc. That just makes all houses worth more to some degree.
It will be months and months before the levees have been hardened and the city is safe to return to. It will be weeks and weeks before insurance adjusters are able to inspect houses that are still under water. Knowing the insurance industry as I do, most of this 'damage assessment' will be wasted energy. The box being checked the most on claim forms is labeled "deny this claim." Flood insurance is almost impossible to purchase in that region of the country.
Frankly, if I had owned a house in N.O., I would be thinking seriously about moving. The city just lost about 400,000 of its poorest residents. Most of them will not be returning either. What will the demographics of Jefferson Parrish look like in two years? It's anybody's guess.
We know some folks from Biloxi who evacuated and the husband came back to check on the house. Their house had some damage, but nothing major (broken windows, a few shingles gone). Anyway, a neighbor who's house was totally destroyed, offered them cash for their house upon hearing that they planned to move away ASAP. They closed the deal immediately. I think we will see a lot of this. Houses that survived that storm with minimal damage will sell quickly. And certainly there will be a housing boom in other southern states (away from the coast of course).