The current housing market has people looking at a multitude of economic indicators in an effort to predict whatâ€™s going to happen next. One commonly overlooked housing market snapshot is the relocation end of real estate business. While it doesnâ€™t often make headlines, relocation constitutes a major revenue source.
Fuller Towne and Country Relocation Director Dolores Mozer attended the Relocation Directors Council spring conference the first week of May, coming away with a better idea of whatâ€™s happening around the country regarding â€œreloâ€™s.â€ As expected, some areas are still suffering while others are doing well. Those cities and states doing better than the average are Denver, Dallas, Houston and most cities in North and South Carolina. What do I mean by â€œdoing wellâ€ when it comes to relocation? Simply stated, employers in these healthy areas are finding it relatively easy to sell homes belonging to employees they want to move and to bring new people into these areas. Thatâ€™s because home values have not dropped drastically; therefore people moving out are not taking a loss on their home, and people moving in are finding good, affordable housing. Moreover, thereâ€™s positive economic growth in these sectors in the form of energy-related and high-tech jobs.
Areas still suffering include parts of Michigan, Ohio, Florida, Nevada and California. Why? Just reverse the healthy scenario above: Housing values in these states have plummeted, jobs are scarce, the local economy is depressed and many people simply canâ€™t afford to move.
Whatâ€™s the forecast? Two third-party relocation companies attending the Relocation Directors Council conference pointed out theyâ€™re busier than ever. Two major corporations said theyâ€™re on track to relocate as many or more employees than they did in 2007. The consensus from conference attendees was that the number of transfers would not decrease in 08/09; we may see an increase, but at the very least, remain stable. Some companies have even made up the short fall difference between the sale price of the home and what the employee actually owed on the mortgage. All of this is good economic news for the country and the housing market.