Articles / Publications

Newsday, Friday, September 28, 2001

A Quiet Time in the Marketplace

THE phones have not been ringing.

That's been the story at many real estate offices since Sept. 11, when the deafening explosions at the World Trade Center left the nation's housing market quiet.

Most real estate experts say it's too early to tell what impact the disaster will have on the region's home sales. Not only was the market already slowing, but buying traditionally falters in September, deferred by the Jewish holidays and the focus on getting kids back to school.

Still, there's lots of anecdotal anxiety.

Robert Scalia, a broker with Century 21 Albertson Realty in Southold, tells of one client who canceled his sales contract for a home on the North Fork, saying his business was completely destroyed in the trade center attacks.

Scalia, a native of Garden City - a community hard-hit by human losses in the disaster - recently called a couple there who had asked him look for a second home on the East End.

"They told me their son was killed," Scalia said. "What can you say?"

Yet some buyers remain resolute.

Among those who already secured mortgages, "nobody has had plans to wait," said Jonathan Pinard, president of NationResidential Mortgage Banking Corp. in Hauppauge.

Last week, he added, some friends told him they had initially decided to forego a long-anticipated trip into Manhattan to see a Broadway show - but in the end, they went. So while people are personally shaken, Pinard said, "they seem to be acting like they're saying, 'I'm not going to let those people [terrorists] stop me.'"

Nevertheless, much of the activity in the real estate community continues to be focused on helping families of the victims of the terrorist attacks.

As of early this week, the National Association of Realtors, a Washington-based trade group, had collected $2.5 million to provide mortgage and rental assistance to victims' families, including families of fire, police and other emergency personnel. Of that amount, about $100,000 has been contributed by the New York State Board of Realtors and $50,000 by the Long Island Board of Realtors, which includes Queens agencies, said Tricia Chirco, marketing and communications manager for the Long Island board.

Applications for assistance may be obtained by calling 800-422-2501 or logging on to www.mlslirealtor.com and clicking on the "Realtor Housing Relief Fund" logo.

And contributions to the relief fund - from anyone, not just agents - can be made by calling 800-874-6500 or online at www.relief.realtor.org.

Together, the housing and mortgage banking industries have pledged to raise $25 million to assist victims.

In addition, mortgage relief is available for affected families. Find out more information from Fannie Mae at 800-732-6643. Additional information is at www.mbaa.org.

While these efforts continue, real estate companies are trying to guide their employees in an uncharted territory, balanced between fragile emotions and business imperatives.

"It's tough," said Scalia of Century 21 Albertson, whose firm has about 70 agents in four offices. "We're just trying to keep everybody focused as much as possible."

Other real estate-related companies believe that their business will return; but the terrorists' attacks have taken a stinging toll on their employees and customers.

"It took a lot of momentum out of everybody," said Peter Breitstone, managing director of Breitstone & Co. Ltd., a Cedarhurst-based insurance brokerage and consulting firm, whose clients include those in construction and real estate development.

"What CEOs need to do is take the time and expense to deal with peoples' issues," Breitstone said. "Maybe you end up with a little bit less [business], but you need to be aware that we're going through a lot of change. You need to be sensitive to it."

No one believes this will be easy because, as Breitstone notes, there are "untold numbers of people affected in unknown ways."

Maybe, he says, the world simply can't focus on growth right now, and we need to return to other values.

"I'm not fearful, he said. 'We'll get through it, taking a deep breath and getting momentum for new initiatives."

Real Estate Editor Ronald E. Roel welcomes your comments and questions. He may be contacted by e-mail at roel@newsday.com.