Recent indications of rebounds in home prices in many U.S. cities are solid according to the Case Shiller home price indexes moving at their speediest rate since mid-2006 based on year-over-year data. The Case-Shiller report, a leading measure of U.S. home prices, showed a 5.5 percent gain year-over-year for the 20-City Composite in the 12 months ending in November 2012.
Good news for transferees with homes to sell!
According to the most recent report, prices rose in 19 of 20 cities, with the only drop measured in New York. The Sunbelt, which bore the brunt of the housing collapse in the last four years, is now a leader in the economic recovery with southwest cities such as Phoenix and Las Vegas showing double-digit gains, and similarly, the southeast cities of Miami and Tampa are looking much better too. Many California cities are also improving while cities in the northeast and industrial Midwest continue to sputter.
MarketWatch’s recent analysis shows that it looks as if the American housing market is at roughly 52% of the comparative health of the 2007 housing market. While investors may be hesitant of jumping back into the real estate market, new housing starts are rallying and many of the nation’s leading homebuilders are seeing their stock prices near a 52-week high.
So what’s the possible effect on employees moving within a corporate relocation program nationally, or even accepting an international assignment?
Elimination of a huge obstacle to accepting a relocation or international assignment… in many areas across the nation, there has been a significant increase in multiple offer events – something that has been not happened in many years.|
This is a dream come true for transferees attempting to sell their home within a corporate relocation program. The news is a double-edged sword causing unwanted competition for the transferee buying a home. Getting outbid with a full-price offer is a frustrating consequence of a real estate arena where there is an inventory shortage of affordable homes with multiple or cash offers. Transferees must compete with fence-sitting local buyers who are now making a play to enter the market based on mortgage interest rates that are still at an all-time low as well as both domestic and foreign speculators.
It is critical for relocating employees to be well-educated about the complexities of local real estate market in their new community prior to any home finding trips. It is also important to remember today’s mortgage qualification criteria are much more stringent than in past years. Buyers may be competing for fairly low or small inventories of homes for-sale. Early pre-qualification for a mortgage can help the relocating employee act quickly when purchasing a new home.
How is your local market doing?