State of the U.S. Housing Market: Impacts on Mobility
There are a variety of trends in the U.S. housing and mortgage markets that are impacting organizations and relocating employees. This blog post discusses:
- Current U.S. housing and mortgage market trends
- Housing forecast for the remainder of 2023
- How the U.S. housing market is impacting mobility
- Ways you can help relocating employees achieve success with their home sale and home purchase
U.S. HOUSING MARKET TRENDS
Following are highlights of recent trends in the U.S. housing market:
2023 Housing Market Forecast
According to Freddie Mac’s October Economic, Housing and Mortgage Market Outlook, here’s what we can look forward to for the rest of 2023:
HOW IS THE U.S. HOUSING MARKET IMPACTING MOBILITY?
So, what do these statistics mean for U.S. relocating employees?
The current state of the U.S. housing market is causing hesitancy or unwillingness to relocate among employees as they re-assess their purchasing power. Uncertainty in the economy and increased sensitivity to higher costs in housing and cost of living expenses are causing challenges, with some buyers feeling they may be excluded from purchasing in certain markets. There is also the fear of the potential for loss on sale.
Timelines and Costs
Lower inventory levels can extend relocation timelines or result in phased moves. This increases the probability of needing additional temporary living and storage, resulting in added costs.
Home Sale Impacts
Price reductions are becoming common as sellers who were pushing and testing the hot markets realize they cannot get the inflated prices they were asking for. Inspection and appraisal contingencies that had been removed from contracts are now returning as a normal part of the offer process. Appraisers are being more cautious as values are gradually coming down with the normalizing of the market, and some homes are not appraising at the inflated values sellers are expecting.
Builder slow downs are continuing as they are impacted by rising interest rates, the slowing of the market, and rising costs for building materials.
Buyers are still expecting concessions from sellers, even though it is still considered a “seller's market.” There is also the growing risk for home sale fall throughs when rate increases hit and buyers who were on the borderline of qualifying no longer qualify.
HELPING RELOCATING EMPLOYEES ACHIEVE SUCCESS WITH HOME SALE & PURCHASE
There are a number of ways you can help relocating employees selling or purchasing a home.
When selling their home
- Choose a relocation-trained agent to strategically sell the home quickly and at the highest price possible in a balancing market.
- Prepare the home meticulously for showings and open houses.
- Price the home correctly based off the current (and not pre-interest rate hike) market.
- Reduce the price if no offers are received within two to three weeks.
- Consider offering incentives to combat rising interest rates, such as a mortgage rate buy-down.
When purchasing a home
- Choose a relocation-trained agent to navigate the low inventory and affordability challenges.
- Obtain loan approval before going on a house hunting trip.
- Watch new and “coming soon” listings, visit homes quickly, and extend an offer as soon as possible if there is interest in a home.
- Discuss local market conditions with your relocation-trained agent to formulate an effective offer strategy.
Additional Ways You Can Assist Your Relocating Employees
Additional successful approaches we see clients exploring:
For more information on trends and best practices for the U.S. housing and mortgage markets, and how we can help support your relocating employees, please contact us at firstname.lastname@example.org or reach out to your Sirva representative.
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