Katrina`s effect on New Homes Sales.

One week after the destruction in New Orleans and Mississippi, it`s time to digest what the future will bring in the Housing Market.
The cost of rebuilding new homes for people who have been hit in this region will cost billions. Projections of completion of such as task is 9 months to a year. In my opinion we`re looking at a 5-6 year turnaround before these cities are actually rebuilt.
How will this effect the rest of our country? Expect materials such as Dry Wall, Sheet Rock, Concrete Block, Paint and Labor Costs to rise across the board. This will indeed cause the prices for new construction to rise an average of 20-25%.
What does this mean for investors? I strongly suggest that it`s time to look at purchasing new construction as well as condo conversions today, not tomorrow. Housing will be scarce in certain regions. Because of our location Florida, will undoubtedly gain from this as well as Texas.
It`s certain that these people will relocate to our area`s in search of jobs. Places like Jacksonville,Tampa and Orlando will benefit for those seeking new employment.
Rentals in these area`s will be at a premium!
In the next two weeks, look for Fed Chairman Greenspan to leave interest rates alone for the time being! With gas prices continuing to move higher, it doesn`t make sense to let the interest rates continue to rise!
Inflation during times of massive destruction is not what this country needs right now and the rest of the world is watching us very carefully to see how our government reacts. I highly doubt at this juncture that President Bush will allow this to happen. Within the next few weeks, we`ll see what direction our nation will be heading.
Our prays go out to our neighbors in New Orleans and Mississippi.