International economic and public health crises are bound to have some effect on real estate markets worldwide. The COVID-19 pandemic represents a public health and an economic crisis. Consequently, the pandemic has certainly had a significant effect on the Rhode Island real estate market. Earlier this month, a popular newspaper interviewed five Rhode Island real estate agents to discuss their experiences and observations surrounding the effect of the pandemic to the statewide residential real estate market.
The Initial Pause of Real Estate Markets
During the beginning of the pandemic, the northeastern United States was hit especially hard by the virus. Public health officials instituted a strict lockdown in early March and most Rhode Island commercial activity was seriously affected. According to the realtors interviewed for the recently published article, the Rhode Island residential real estate market suffered a severe slowdown as a result of the lockdown and other worries surrounding COVID-19. Listings were cut drastically. However, the market did not shut down entirely, as deals already in the pipeline could still go through and remote technology allowed ambitious buyers and sellers to proceed with listings and transactions if they desired.
The Opening of the Floodgates
After the initial slowdown and pandemic fears subsided, public health officials managed to get the virus under control, and the Rhode Island residential real estate market saw a large bump in listings and sales. It was as if all of the homes that would have been sold during the lockdown period went on the market as soon as it appeared safe to do so. Because of this, the summer of 2020 has actually seen a 50% increase in homes that are under contract compared to the same time in 2019. Most if not all of this increase can be attributed to the homes that would have been sold during the spring if not for the pandemic and government response.
Factors Unique to Rhode Island That Are Driving the Real Estate Market Today
According to the real estate agents interviewed for the article, there are some other reasons that the Rhode Island real estate market appears to be booming at this time. Rhode Island is situated between New York and Boston, and many people are reconsidering living in the largest metropolitan areas in light of the pandemic. Because of the state’s convenient location, the real estate market in Rhode Island is poised to take advantage of this urban exodus. The rising availability and acceptance of remote work for employees of firms based in the large metropolitan areas compound the desirability of moving to Rhode Island as a more affordable alternative. The realtors all tended to agree on one thing: The Rhode Island real estate market is a strong sellers’ market at this time.
Are You Interested in Buying or Selling a Home in Rhode Island?
If you are interested in buying or selling Rhode Island residential real estate, the market is very active at this time and transactions are moving along quickly. If a deal is made, it’s important not to rush through the important steps of a transaction. The assistance of a qualified Rhode Island real estate attorney with Bilodeau Capalbo can ensure that your transaction proceeds as intended and no important details are missed. Call us to schedule a consultation with one of our licensed real estate attorneys. Contact our offices at 401-300-4055 today.