Irene Leaves Mark On Real Estate Market

It has been nearly a week since tropical storm Irene passed through the area, but its effects continue to linger — particularly in the local real estate market.

Real estate professionals from across Rhode Island explained that they are left dealing with additional complications in an already difficult housing market.

Real estate professionals from across Rhode Island explained that they are left dealing with additional complications in an already difficult housing market.

Suzanne Blades, a Realtor with Keller Williams of Northern Rhode Island, said the storm put a direct damper on at least one potential sale for her.

I have a very interested party in a home I have listed, however a tree has fallen on it and the owner is having difficulty having the tree removed, Blades wrote in an e-mail message. "This is making it difficult to show this home, let alone sell it."

Fredda Korber, of Residential Properties, described a great deal of tree damage in Barrington and the East Bay, which caused power outages — and problems with open houses and showings.

Most of the agents were not showing property during these days [following the storm]. We, as agents, like to set the stage for a successful showing — this involves arriving at least 10 minutes before a scheduled appointment, opening blinds, and turning on lights, said Korber in an e-mail. "Also, we advise our sellers to have the landscaping as manicured as possible. Therefore, the storm did hamper our showings!"

Buying and selling homes is a big part of the real estate market, but an overlooked segment is the rental market, especially vacation rentals. Many of these homes are rented out for a week at a time, so a storm can wreak havoc with these properties.

Summer rentals are being affected, said Angela Dupouy of Randall Realtors, which handles many summer rentals in South County. "Many weekly renters had to face delaying for a few days, or staying at a property that had no power. [These were] beautiful days to be at a beach house this week — but the storm has stirred up tons, and I mean tons, of red seaweed, which is several feet deep at some beaches and stinking up neighborhoods."

Another problem facing the local market is the designation of Rhode Island as a federal disaster area.

Due to most counties in Rhode Island and Massachusetts being declared federal disaster or federal emergency areas, every property that was previously appraised now has to be re-inspected for potential storm damage, said Mike Nadeau, a Senior Loan Officer at Mortgage Master, Inc. of East Providence. "Logical and necessary, but a delay in many closings nonetheless."

In some cases, scheduled closings on homes are in jeopardy. After all, a home that sustained damage could be a vastly different place than the one a buyer bid on just days before.

This has caused many issues with loans that are currently in process, as many of the lenders now want second appraisals and/or reviews of the properties, in addition to the fact that some homes were damaged and sales may have been compromised as a result. explained Greg Dantas, a Realtor with Re/MAX Professionals in East Greenwich.

While there is no doubt that Irene has complicated the real estate market in the near term, Dantas said he doesn't feel the magnitude will be significant.

I don’t believe it has changed the traffic levels, as summer is generally slow and the market tends to pick up after Labor Day, Dantas wrote in an e-mail message. "We dodged a huge bullet by virtue of not receiving all of the rain that some other states received."

That optimistic perspective was shared by Jim Wetzel, Vice President of the Kent Washington Association of Realtors, covering central and southern Rhode Island. Wetzel acknowledged the short-term challenges, but added he is also thankful for the people and infrastructure that will help minimize the current situation.

The biggest challenge for our members and clients is the delays for business due to loss of utilities: Electricity, cable, and in some cases water, Wetzel explained. "However, much like a Nor’easter winter storm, everyone is understanding of the delays, and many [are] opening their doors to neighbors to offer a helping hand."

Wetzel said he believes Rhode Island will survive the temporary impact of Irene.

Besides the natural beauty of being in Rhode Island, we are all very lucky to be served by the best public services and local utilities, which make Rhode Island one of the best places to live in the country, Wetzel explained.