A Year after the Storm: a Look at the Local Real Estate Business.

WASHINGTON -- Realtors(R) in the Gulf Coast region have seen the best and worst of times in the year since Hurricane Katrina devastated the Gulf Coast, causing billions of dollars in damage and destroying more than 200,000 homes along the Mississippi, Louisiana and Alabama coasts.

Real estate practitioners who work in some of the most heavily damaged neighborhoods struggled in the aftermath of Katrina, not selling a single home in the first few months after the storm. In contrast, regions close to the affected areas saw an immediate boost in sales activity; Realtors(R) worked 10-to-12-hour days, seven days a week to keep up with calls from individuals who were displaced by the hurricane and looking for a new place to call home.

"Realtors(R) play an important role in rebuilding our communities," said Thomas M. Stevens, NAR president and senior vice president of NRT Inc. from Vienna, Va. "Some Realtors(R) had a difficult task post-Katrina; however, they rose above and beyond the sales arena by providing residents with relief and assistance in finding housing, even when many lost their own homes."

Prior to Katrina, the housing market in New Orleans was healthy; sales were in near record-level territory and home prices were rising at a rate of 10 percent a year. In the wake of one of the worst storms to ever hit the country, sales in New Orleans plunged, falling nearly 85 percent in September 2005.

Realtor(R) Brooke Arthurs, an agent with Latter & Blum in New Orleans, questioned whether her real estate practice would weather the storm. "From September to November almost nothing was happening saleswise in the city. Fortunately, as the rebuilding effort got further along, sales began to pick up," said Arthurs. From January to June 2006, Arthurs did a year's worth of business in six months. "People who were displaced by the flooding quickly moved to buy homes in dry areas, younger buyers and students took advantage of reduced prices on gutted homes in the flooded neighborhoods, while a few looked to leave the area or scale down."

While home sales in New Orleans initially lagged, nearby regions received an immediate boost in sales activity as displaced residents competed for a limited supply of homes. "September through November 2005 saw a buying frenzy in the outer areas of New Orleans," said Realtor(R) Re Re Avegno, an agent with RE/MAX Real Estate Partners in Metairie, La., next door to New Orleans.

Realtors(R) weren't just busy helping individuals find housing during those first few weeks and months; they were also busy providing relief in other ways as well. "Post-Katrina, real estate was an emotional roller-coaster. Realtors(R) became counselors, therapists, friends, sounding boards, and chauffeurs as buyers tried to replace not only their homes but also their possessions, neighborhoods and lifestyles," said Avegno.

Realtor(R) Don Buisson of Ashman-Mollere Realty in Waveland, Miss., another hard hit area along the Gulf Coast, also saw a rise in sales activity when he returned to the area after evacuating to Alabama. "So many homes and rental properties were gone, completely wiped out. Prices of those homes that weren't destroyed immediately went up 25 percent," said Buisson. Property values have continued to increase since last year. Rebuilding is a slow process but it's happening. Buisson doesn't believe residents will abandon the region despite the threat of future hurricanes and thinks that beachfront property will be as hot as ever.

"It's a beautiful area and people love living here. We've had volunteers come here with clean-up crews and enjoy the area so much they decide to buy," said Buisson.

Today, the rebuilding effort is having a major impact throughout the region. Sales in New Orleans are up 9 percent compared to a year ago and home prices are 16 percent higher. The surrounding areas continue to perform well and are generally staying ahead of the nation in terms of sales and prices. In nearby Baton Rouge, sales are up 4 percent from a year ago and home prices are up 23 percent. "Nearly everybody who plans to live in the area has purchased a new home or is fixing their damaged home. Some are still renting and waiting to see what happens this hurricane season," said Avegno.

"New Orleans is going to be great in the end," said Arthurs. Buisson agrees, "Everything is going to turn out all right; the Gulf Coast is going to come back quickly and we are going to have a brand new, nice community again."

The National Association of Realtors(R), "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.REALTOR.org. This and other news releases are posted in the Web site's "News Media" section in the NAR Media Center.

REALTOR(R) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics.