When the COVID-19 pandemic upended the housing market, sending downtown buyers looking to the suburbs and Cape Cod, Massachusetts’ real estate agents and their brokerages had to figure out how to ride the waves.

Our world changed in March 2020.  

We faced an oncoming pandemic with no knowledge of its outcome, and the real estate industry in particular braced itself for the worst.  

Health concerns and stay-at-home orders led to fewer buyers looking for homes and fewer sellers willing to list their properties or allow strangers to enter their homes. Fears from the 2007-2009 housing crisis linger in the minds of many, as some homeowners are experiencing an economic toll in the form of job loss and uncertainty.  

This health crisis has tested the fabric of everyday Americans and those around the world, and we have needed to make adjustments unheard of in our everyday lives. The pandemic’s impacts on the housing market were sudden and dramatic. Residential real estate activity depends largely on local conditions, so while our urban markets saw a notable downturn in activity during the spring, other markets experienced a precipitous surge in interest.  

The MetroWest suburbs were on fire with activity. Families that were planning a move to the suburbs in a few years suddenly found themselves in bidding wars in those very suburbs. Tight inventory, rising costs, the work-from-home standard and college students moving home were all driving factors in this frenzy. Our offices on Cape Cod moved transactions from short-term rentals to home purchases virtually overnight.  

Because of the pandemic, many households are reconsidering their residential needs, as their homes have become synonymous with their offices, schools, restaurants and recreation facilities. Essentially, so many that could afford to move decided to move in 2020 and were willing to pay a large sum to do so.  

Investments in Agents 

It was a strange time for our company. Gibson Sotheby’s International Realty now has 24 offices across Eastern Massachusetts and each of our markets were in dramatically different places and faced distinct challenges and opportunities in 2020. Despite the large drops in home sales due to the health crisis, real estate activity began to improve in our non-urban markets in late spring, approaching pre-pandemic levels. Cities like Boston and Cambridge, however, did not recover at the same pace. Inventory increased and rental prices and purchase activity fell. 

In every crisis, though, finding the positives is of the utmost importance.  

In our industry, people will always need to move, relocate and downsize. With health and safety at the center of our concerns, the very first measure we took last spring was to cease all public open houses. It was a tough decision, but critical in keeping our associates and our communities safe.  

From there, our leadership team invested in countless one-on-one coaching and group learning sessions to ensure our agents had the tools to succeed. It required an all–hands–on deck effort – how I see it, the only way to face any kind of crisis. We needed to act quickly so that our agents could transition seamlessly to a remote working environment.  

Agents Pushed Through Stressful Time 

Our agents’ adoption and embracement of virtual marketing tools and digital sales processes was crucial in moving their businesses forward and giving their clients confidence and peace of mind. We organized our communications through Zoom and continue to use its video conferencing features to stay connected. With geography no longer an obstacle, our agents are working more closely together than they ever have before, leaning on one another to learn new skills and discuss best practices they are employing daily in their respective markets. 

Larry Rideout

When we first launched Gibson Sotheby’s International Realty in 2006, our vision was to bring the concept of “white–glove service” to Eastern Massachusetts by providing a concierge level of support to our sales associates. Buying and selling a home is especially stressful in this environment, and agents have adapted their daily business models to maintain luxury representation for their clients: at every price point, in every stage of life and in every area in the market. If brokerages take on the bulk of what slows our agents’ down from doing what they do best – list and sell – then agents can serve their clients that much better.  

The pandemic has caused a clear shift in activity from urban to suburban real estate markets. 2021 looks to be another strong year for single-family home sales, but we will also see a resurgence in people who are craving the cultural amenities offered by our cities. Local vacation homes will remain more desirable alternatives to traveling abroad.  

There are many positive factors moving forward. The only variable is how quickly we can reach our new normal. Time will give us that answer. 

Larry Rideout is the chairman and co-owner of Gibson Sotheby’s International Realty.