InterLink Relocations Resources closely monitors industry and market changes, and in these Pandemic times, we understand that corporations may be a bit hesitant to jump-start their relocation programs – which is understandable. Fortunately, there is some good news that might alleviate skittishness.
While nothing is known to be certain, the Relocation industry – and corporations – still have a lot to be optimistic about. Below is a broad overview of today’s reality, what’s trending, and where the Real Estate industry is likely heading.
Where We Are
According to Mortgage Bankers Association (MBA) and Fannie Mae forecasts for August 2020, the 30-year fixed mortgage rate is expected to remain right around the 3% interest rate through the 4th quarter of 2021, with rates for Fannie Mae projected to drop as low as 2.7 percent between now and then.
Fannie Mae internal reports show a substantial increase in homebuyer mortgage applications in lower-density areas by people currently living in urban locations.
In other words, moves to the ‘burbs are well under way. In fact, Zillo data reports weaker home price appreciation in urban locations, compared to outer suburbs in several U.S. metro areas, with many real estate companies backing up that claim.
Appraisal Trends According to Worldwide ERC
- Appraisers are BUSY!
- There is an increase in activity for mortgage appraisals (home purchase and refinance)
- Trends are consistent with entire Mobility industry
- There has been a minimal increase in appraiser fees
- Because they are so busy, appraiser turn times have increased
- The increase in activity does not equate to increased volatility in home values
- There are very few markets with declining value trends
- Relocation appraisal variance remains steady
Where We Are Headed
Sixty-four percent of companies are “likely” or “extremely likely” to bring sourcing / production back to North America once the pandemic eases, a recent article from CNBC reported. In that same article, CNBC referenced a study that cited high-margin industries that were “most likely” to return to North America after the pandemic are businesses in the pharmaceutical, IT and food/agricultural sectors.
If you have an idea for Relocation-specific stats that you would like information about, or to learn more about InterLink Relocation Resources, call us toll-free at 866-254-3910 or email email@example.com.
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