Hurricane Sandy had devastating effects on the Northeast in October, with many people losing their homes. However, the New York Federal Reserve recently said the storm will have a minimal impact on the real estate markets in the areas affected.
The New York Fed projects that 300,000 homes in New York were damaged or destroyed by the storm, while an additional 70,000 were affected in New Jersey. These homes account for a very small percentage of each state's housing stock.
"Chances are the impact is going to be relatively small," senior economist with the Fed's research and statistics group Jaison Abel said during a press briefing.
However, each state could see some initial impact on home prices and sales, but prices could also rise as fewer homes on the market could lead to an increased demand.
Perhaps the biggest impact from the storm will be on foreclosures. According to RealtyTrac, foreclosure activity jumped 140 percent in October in New Jersey and 123 percent in New York.