Hurricane Katrina Effects on the Housing Bubble

So what will Hurricane Katrina's impact be on the housing bubble? Will it be a factor in prolonging the bubble or will it help pop the bubble ?

Reasons Katrina would be a factor in prolonging the bubble:

• hundreds of thousands of homes were destroyed. Thus supply has been reduced and hence that causes upward price pressure
• Building materials increase in cost due to increased demand thus causing upward price pressure on new homes.
• The Fed decides Not to raise short term interest rates this month because of increased economic risks due to the hurricane
  

Reasons Katrina would be a factor in popping the bubble:

• People view housing as a more risky investment due to an enhanced awareness of natural disasters.
• Gas prices continue to remain high. People have less money to spend on housing.
  
• Economy suffers due to the hurricane.

Overall, I maintain that the hurricane is a negative factor for the housing boom.