Fewer Involve a Home Sale
Real estate professionals watching companies pour into Florida, Texas, and other business-friendly states may be overestimating how many of the arriving employees will need mortgages. Corporate relocation activity is higher than it has been in decades, but the profile of who moves has shifted in ways that compress the real estate transaction opportunity on both ends.
Scott Ferree, Chief Marketing Officer at MiniMoves, Inc., a company that handles interstate moves for employees with smaller shipments, says the frequency of senior manager relocations involving home sales has declined noticeably compared to five years ago. MiniMoves draws 52% of its business volume from corporate relocation, either directly from corporations or through relocation management companies.
Companies are increasingly relocating mid-level managers and entry-level hires, people who are often renters and can be uprooted without triggering a home sale or mortgage origination on either end. “The frequency of large home sales and transfers of senior managers is on the decline,” Ferree says. “The frequency of transfers of mid-level managers who may be homeowners, but they may well also be renters, they’re the attractive ones because they’re more easily relocated.”
For buyers’ agents and mortgage professionals who view corporate relocation announcements as a leading indicator of purchase activity, the implication is direct: a company moving 500 employees to a new market no longer means 500 potential home purchases.
Read more here-https://keycrewhomes.com/corporate-relocations-are-booming-but-fewer-involve-a-home-sale/
About the Expert: Scott Ferree is Chief Marketing Officer at MiniMoves, Inc., a company specializing in interstate small-shipment moves that draws 52% of its business volume from corporate relocation.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
