You bet the house is devalued – because you will always know what happened and wonder if there are any long term results (like hidden mold).
For my own peace of mind I would be on that worksite all the time and watching how it is being fixed.
Just because the builder is playing nicey-nicey doesn’t mean he will any more than just fix what the eye can see.
So I would get alternate accomodations as near as possible and make myself a constant observer – that is the only way you can “value” the property again and be assured, when you go to sell it, that it was not devalued.
