Tag Archives: real estate

The Fiscal Cliff and Relocation

Now that the election is over, many of us have begun to turn our attention to the looming crisis known as the fiscal cliff.   The fiscal cliff is the popular term used to describe the Budget Control Act of 2011.  Unless Congress acts before January, when the Budget Control Act takes effect, many Bush-era tax cuts will expire, taking approximately 500 billion from consumers/businesses in 2013.  Automatic budget cuts, also part of the political deal to avoid default on US debt last year, would also go into effect immediately to the tune of 1 trillion dollars.

The non partisan Congressional Budget Office estimates that the U.S. economy would go into recession, contracting by 2.9 percent just in the first six months of 2013. The CBO also estimates that the austerity measures of the Budget Control Act could cause the economy to lose 2 million jobs, and unemployment to shoot up to over 9 percent next year.  The graphic below (provided by The Detroit News) gives a clear illustration of exactly what the fiscal cliff is and who might be impacted.

click to enlarge

According to the latest workforce mobility study conducted by Worldwide ERC the top two reasons for employee reluctance to relocate are slowed real estate appreciation/depressed housing market at the old location, (reported by 91 percent of respondents) and transferee’s old location home is in a negative equity situation (reported by 86 percent of member organizations). It is apparent that an unsettled real estate market plays a significant role in impacting how employees perceive moving.

As unemployment rises the size of the potential buyer pool shrinks and uncertainty increases. When people feel uncertain, they tend to wait on major decisions such as a home purchase.  Job growth is the greatest single key to a sustained economic recovery in the short term. With it comes shifts in all sectors of the economy, especially real estate. Experts agree that unemployment is a major drag on home sales hurting investment and household discretionary spending.

The good news is earlier this year organizations were projecting  an overall increase in transfer volume of 6 percent over 2011.  Much of this increase can be attributed to an improving economy and housing market. Low housing inventory and record low interest rates have created strong buyer demand which will most certainly suffer as the Budget Control Act begins to suffocate a market in the early stages of recovery.

As the fiscal cliff threatens to derail our economic recovery and restrain our mobile workforce we say pay attention and stay tuned! The next couple of months could prove to be very interesting!

DRRC Winter Business Meeting

As individual members of the Detroit Regional Relocation Council Relocation America attended this year’s DRRC winter business meeting on March 7th. The theme for our meeting was Destination Detroit: Economic Impact for 2012.   Our very own Stuart Elsea, President of Financial Services, Real Estate One, Inc. was one of three distinguished speakers who participated on a panel of experts.  Joining Stuart on the panel was Peggy Black, President of the Michigan Economic Developers Association and Maureen Krauss, Vice President of Business Attraction for the Detroit Regional Chamber of Commerce.  Continue reading

Social Media and Relocation

For many real estate agents the world of marketing has changed.  According to the National Association of Realtors 2011 Technology Survey more than half of it’s member agents reported using social networking sites last year. This compares with a little more than a third in 2009. Nearly two-thirds have a website and 1 in 10 has a blog.    Social media websites such as Facebook and Linkedin have transformed old contacts into new potential clients and customers.

But how do you know if your social media marketing is really working and is effective?

Our very own Scott Gaffan, Manager of Learning Technologies & Technical Training for Relocation America, has been trumpeting the use of Klout.com.  Klout.com will demonstrate for you the effectiveness of your current online/social media efforts and also helps you to see the types of things that affect that influence.  You can read the full details of this exciting website by clicking over to Scott’s blog here.