‘Viral 9/11’ hits real estate market, a boom predicted

A “slow-motion 9/11” is how Graham Klemm recently described the devastating effects of the COVID-19 pandemic on the Northwest Corner’s housing market.

“History is repeating itself, to a degree,” said Klemm, president of Klemm Real Estate, which serves Litchfield County and Dutchess County in New York.

“I am seeing these echoes of a time gone by,” he said, referring to the aftermath of the Sept. 11, 2011, terrorist attacks and the exodus that followed, as droves of city folk sought safety in the Litchfield Hills.

Fast forward to today, he said, and the raging coronavirus pandemic has a new generation of New Yorkers looking for property in the country, away from the madding crowd, or as Klemm put it, in a place “where there is natural social distancing.”

The only difference Klemm, and other area Realtors see, is that 9/11 was a short-lived catastrophe, whereas with COVID-19 there is no end in sight. Also, unlike the tragic days of 2001, agents could show properties; during the COVID-19 crisis, properties in many states can only be shown “virtually” — although Connecticut brokers are allowed to show homes if the owners are willing to allow people in.

And while that means in the short-term the housing market will suffer a slowdown in sales, in the long term, a boom may be looming.

John Harney, a longtime Realtor in Salisbury, has been selling real estate for three decades in the Tri-state region, most recently with William Pitt/Sotheby’s International Realty. He remembers well the post-9/11 era and the ensuing home-buying rush.

But he had never, until the coronavirus crisis, seen such a dizzying demand for rental properties.

Now that the rentals are all gone, he predicts that many of those renters, who paid “a substantial amount of dollars,” will realize that in the long term that money might be better invested toward the purchase of a home, “to which one could bring their family or friends, and remain safe.”

But in the meantime, said the two Realtors, the uncertainty about when life will return to normal has potential home buyers, sellers and real estate agents on edge.

Even though the administration of Connecticut Gov. Ned Lamont has established real estate transactions and related services in Connecticut — including residential leasing — as an “essential business” that is critical to the state’s economy, restrictions are making it difficult to market real estate in the current environment.

Open houses are problematic, as sellers don’t want strangers to enter their homes. Town halls are closed to title searchers and others seeking the land records that are essential to a real estate transfer. The mortgage and closing processes, too, have restrictions, often resulting in virtual closings.

On the bright side, said Harney, “We have more flexibility in Connecticut than in Massachusetts and New York,” where real estate dealings have come to a halt.

“We essentially have a ‘viral 9/11’ right now,” Klemm said. “We don’t know when it’s going to be safe again, and when people will be going about their normal routines again.”

But he predicted that when the dust settles, a boom will follow.

“New York City is a very transient town,” and a new generation moved into that area of younger people who might not have been aware, until the pandemic struck, of the value of living in a rural, sophisticated setting.

“This may just ignite a fire on the real estate market here — which has always been good, but I expect we’ll see a greater volume of sales six to eight months down the road.

“Yes, it’s very murky now as to when it will all end, but it will end and when it does, people will be looking at houses,” he said. “They may keep that apartment in the city, and buy a larger house in the country where there is room to roam.”

Klemm offered a final word of advice to town leaders in light of the pending crisis: “This is a real lesson to local towns that now is the time to invest in high-speed internet and fiber-optic lines because clearly there is an ongoing need for it. Towns that offer those amenities, he said, “will be valued more than those that don’t. I think this is a real turning point and a lesson” for communities to make the investment.

Latest News

Kent moves closer to reopening Emery Park swimming pond

It may look dormant now, but the Emery Park pond is expected to return to life in 2026

By Alec Linden

KENT — Despite sub-zero wind chills, Kent’s Parks and Recreation Commission is focused on summer.

At its Tuesday, Dec. 2, meeting, the Commission voted in favor of a bid to rehabilitate Emery Park’s swimming pond, bringing the town one step closer to regaining its municipal swimming facility. The Commission reviewed two RFP bids for the reconstruction of the defunct swimming pond, a stream-fed, man-made basin that has been out of use for six years. The plans call to stabilize and level the concrete deck and re-line the interior of the pool alongside other structural upgrades, as well as add aesthetic touches such as boulders along the pond’s edge.

Keep ReadingShow less
Jacob assumes leadership role at William Pitt Sotheby’s Litchfield Hills offices

Eddie Jacob was recently promoted to Assistant Brokerage Manager for four Litchfield Hills offices of William Pitt Sotheby’s International Realty.

Photo provided

William Pitt Sotheby’s International Realty has appointed Eddie Jacob as Assistant Brokerage Manager for its four Litchfield Hills offices, the company announced on Nov. 19.

In his new role, Jacob will support agents and help oversee operations in the firm’s Kent, Litchfield, Salisbury and Washington Depot brokerages.

Keep ReadingShow less
Winter sports season approaches at HVRHS

Mohawk Mountain was making snow the first week of December. The slopes host practices and meets for the HVRHS ski team.

By Riley Klein

FALLS VILLAGE — After concluding a successful autumn of athletics, Housatonic Valley Regional High School is set to field teams in five sports this winter.

Basketball

Keep ReadingShow less
Bears headline DEEP forum in Sharon; attendees call for coexistence, not hunting

A mother bear and her cubs move through a backyard in northwest Connecticut, where residents told DEEP that bear litters are now appearing more frequently.

By James H. Clark

SHARON — About 40 people filled the Sharon Audubon Center on Wednesday, Dec. 3, to discuss black bears — and most attendees made clear that they welcome the animals’ presence. Even as they traded practical advice on how to keep bears out of garages, porches and trash cans, residents repeatedly emphasized that they want the bears to stay and that the real problem lies with people, not wildlife.

The Connecticut Department of Energy and Environmental Protection (DEEP) convened the meeting as the first in a series of regional Bear Management Listening Sessions, held at a time when Connecticut is increasingly divided over whether the state should authorize a limited bear hunt. Anticipating the potential for heated exchanges, DEEP opened the evening with strict ground rules designed to prevent confrontations: speakers were limited to three minutes, directed to address only the panel of DEEP officials, and warned that interruptions or personal attacks would not be tolerated.

Keep ReadingShow less