One year ago, Hurricane Katrina devastated the Gulf coast, when it caused billions of dollars of damage and destroyed over 200,000 homes along the Mississippi, Louisiana and Alabama coasts.

Prior to Katrina, the housing market in New Orleans was healthy, with sales reaching a near record-level territory, residential property prices were appreciating by around 10% a year. However, residential sales in New Orleans fell by nearly 85% following the hurricane.

"Realtors play an important role in rebuilding our communities," said Thomas M. Stevens, NAR president and senior vice president of NRT Inc. from Vienna, Virginia. "Some Realtors 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."

Realtor Brooke Arthurs state that there were very few sales from September (2005) to November. “Fortunately, as the rebuilding effort got further along, sales began to pick up" reports the company.

From January to June 2006, Arthurs did a years worth of business. A spokesperson said: "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."

Today, the rebuilding effort is having a major impact throughout the region. Sales in New Orleans are up 9% compared to a year ago and home prices are 16% higher. The surrounding areas continue to perform well and are generally staying ahead of the national average in terms of sales and prices. In nearby Baton Rouge, sales are up 4% from a year ago and home prices are up 23%.