What's happened to the real estate marketplace since September 11th?

As you look around the country it's plain that the terrorist attacks in New York, Washington, and Pennsylvania have impacted the real estate marketplace. At the same time, the general effort to "get back to business" suggests that in recent weeks the marketplace has rebounded in many areas.

Competing economic forces are plainly at work. On one side, recession and lay-offs should reasonably result in generally lower unit sales and softer prices. Alternatively, lower interest rates increase the pool of buyers who can enter the marketplace, increase the spending power of move-up buyers, and thus create additional demand.

From the Realty Times Market Conditions Report™, here is a sample of local reports from leading real estate professionals nationwide:

Fort Worth, Texas

"After the attack on the World Trade Center sales and inquires about homes came to a screeching halt. I am happy to report a sharp upturn in both Buyer and Seller inquires. Buyers seem to have overcome their fears and are taking advantage of the lower interest rates. Most Sellers I have talked to are optimistic and are taking advantage of this situation to sell their existing home and move up to a larger home. My Internet contacts are up and in the last three weeks I have placed several homes under contract." J.C. Cunningham, Real Estate by Pat Gray

Eden Prairie, Minnesota

"The events of 9/11 may have may have stopped the fast inflation Eden Prairie market for now, but prices are holding stable with median home sale prices (that price at which half of all sales are above and half are below) hovering around $215,000 and average sale prices holding near $300,000. Market times are continuing at a quick 30 days on average. Currently there are just over 200 single family, condo and townhome properties for sale in Eden Prairie priced between $120,000 to over $1 million." Mary Leizinger, RE/MAX Results

Salisbury, Maryland

"Many of my past clients and customers called since the September 11th tragic events asking whether or not the market value of resort properties was affected by the downturn of the economy and the uncertainty of the economic outlook.

"I watch the market updates several times a day and have not seen any decrease in the value of resort or not resort properties on the Eastern Shore of Maryland. Although the market has slowed down a bit, it is still very active we are still experiencing the best market ever." Imad Elali, Long And Foster Real Estate

Tuscaloosa, Alabama

"While the market slowed dramatically after the tragedies of September 11, buyers returned in full force in October. With rates at historic lows, our phones are ringing with buyer inquiries. The inventory is around 1100 homes, providing a huge selection in most areas with some tightness in specific school zones and price ranges. Overall a balanced market." Rusty Dockery, RE/MAX Colony Realty

Highland Park, Texas

"Highland Park and University Park make up the Park Cities. These two locals are the most desired locations in Dallas. Since the recent terrorist attacks, the market has softened as in most locations. In the recent weeks, the market has rebounded and activity has dramatically picked up. Seasonally, this is a slower market, but with interest rates as low as they are, buyers are taking advantage of them and creating more activity than usual. With consumer confidence being lower than usual, prices are a little softer than they have been but homes are selling at a steady pace!" Nora Ling Lane, Virginia Cook Realtors

Orlando, Florida

"Home listings for the Metropolitan Orlando area have risen since the tragic events of 9/11. Active Listing Inventory rose from 6,068 in September to 6,537 by the end of October 2001.

"For the week of September 10-16 there were 482 new listings, 299 price changes, and 316 closings. In contrast, for the week of November 6-11 there were 553 new listings, 358 price changes, and 269 closings.

"Some of the inventory accumulation may be seasonal, but with the holidays just around the corner, that trend is likely to continue until next year when demand for housing should increase to more traditional levels. For certain, low interest rates are a major plus in today's housing market.

"Current buying activity in selective price ranges are in part due to the lowest mortgage rates in nearly 30 years. However, it is important to recognize that much of the buzz about the current mortgage activity is generated by homeowners refinancing their existing home loans. (Data provided by the Orlando Regional Realtors Association)." Clem Monge, C21/Professional Group

Bridgewater, Massachusetts

"Market conditions since 9/11/01 have slowed but those loyal Bridgewater buyers are still out there. 75% of the activity in Bridgewater seems to be buyers who already live there and wouldn't live anywhere else...Move up buyers are willing to pay in the $350,000-$500,000 range for a new colonial or home to suit the extended household." Debra J. Cahill, RE/MAX Landmark Realty

Mount Laurel, New Jersey

"Conditions during most of 2001 have shown it to be a Seller's Market with little inventory of homes for sale. After the events of September 11th, there has been a slow down of buyer activity creating a slight build up of inventory. I have noticed there are more higher priced homes to choose from than we have seen during the first three quarters of 2001. Although economic conditions have caused lower consumer confidence in many areas of the country, the Northeast seems to be "weathering the storm" in terms of the housing market. I believe thirty year record low interest rates have kept buyer activity at a steady pace, luring buyers out of temporary housing, and even making current homeowners consider this an excellent time for "move up" opportunities." Toni Diamond, Pru Fox Mt. Laurel

Published: November 20, 2001

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