Friends and Colleagues

Is the glass half empty or is it half full? Consumer sentiment about the current housing market tends to take a more pessimistic outlook based on what the media feeds us on a daily basis. The truth is there are numerous upsides to this market correction. Interest rates remain low and lower real estate values translate into affordable housing options for first-time homebuyers. The sky is far from falling.

Working with seasoned real estate advisors that have worked in all types of real estate cycles is more important than ever as buyers and sellers navigate the domestic market. At ETC Relocation, we are working closely with agents in our network to help them find the right marketing mix to move transferees on deadline. Our roots are in real estate and our strength and depth of expertise in relocation makes us a truly valuable asset in these market conditions – of this you can be assured.

In the international arena, ETC continues to expand its global services, providing successful assignment management solutions throughout the world. We have aligned ourselves with the best partners and continue to focus on this growth. Our leadership role on the planning committee for the ERC Global Workforce Symposium that takes place this month is a reflection of our commitment to this aspect of relocation. This important forum keeps us connected with leading suppliers across the globe and stimulates an idea exchange like no other. Ultimately, this benefits you, our clients, as we work alongside you in the competitive field to attract global talent.

Take a moment to peruse the latest market information offered here. We know by keeping you informed about the trends that are shaping today’s real estate market, it will help you stay connected with the forces that will affect transferees. 

Patty Wilkins, CRP
Vice President, Operations
Employee Transfer Corporation.

One of the reasons mortgage interest rates are going up is because the world economy is booming, say financial analysts. According to the survey "Global Relocation Trends Survey," more job transferees are moving overseas.

More than two thirds (69 percent) of multinational corporations reported an increase in the number of international assignments in 2006, the highest percentage since the annual survey was first published in 1993. Further, 65 percent of companies intend to send even more employees on assignment by the end of 2007 than in 2006.
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Job opportunities in less appealing destinations – because assignee safety is a concern – are on the rise according to the 2006 Worldwide Survey of International Assignment Practices and Policies. The percentage of international assignments to the Middle East doubled, increasing from 5 percent in 2000 to 10 percent in 2006.

The survey, which included respondents from 900 organizations with more than 175,000 assignees, also found that while more transferees are being sent to unstable areas, incentives to take these assignments are shrinking. Use of hardship premiums for these difficult locations has been on the rise since 1996 when 64 percent of respondents reported using hardship premiums, 67 percent in 2002, 71 percent in 2004 and 74 percent in 2006:

Nearly half of those surveyed said they use an equal percentage of base pay when measuring hardship premiums for assignees from multiple countries. Another third reported distributing the same cash amount to all assignees.

The increase in Middle East activity and the growing use of hardship premiums point to corporate growth in difficult destinations and recognition from the top of the kind of danger that may await transferees.

Mobility Magazine

In a housing market in which there is a volume of homes for sale, sellers MUST price their homes fairly and accurately if they want them to sell. This means assessing the property based on its true merits and not the sentimental value it has held for its owners. Read More...

High prices and hard financing lead buyers and builders to think small.

The McMansion may be shrinking.

With the nation's housing market in a slump and the mortgage market in disarray, many homebuilders are putting up fewer supersize homes and offering smaller floor plans. That seems to be what buyers suddenly want in an era of high prices and tougher financing.
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In a survey by the University of North Carolina, 53 percent of respondents said they lost work time worrying about a past or future confrontation with a co-worker, while another 37 percent said such an encounter resulted in a reduced commitment to their organizations. In addition, 28 percent cited losing work time to avoid disputes with a co-worker, and 22 percent felt less enthusiastic about their jobs because of the level of strife. However, it was inconclusive whether a good-natured, rubberband battle was bad for employee morale.

Mobility Magazine

(2000-2005)

Some of the results of the survey, from the National Association of Realtors (NAR) were more positive. More metro area markets - 97 of 149 - gained ground than lost.

One of the four U.S. regions, the Northeast recorded a slight price gain of 0.7 percent. The West lost 0.4 percent, the South 1.6 percent and the Midwest 2.2 percent.

NAR predicts home prices will turn slightly positive again by spring of 2008 and rise about 2 percent that year.

Among individual metro areas, prices in the second quarter plunged furthest in Elmira, N.Y., down 17.9 percent to $71,700. Other big losers included Palm Bay, Fla. (down 15 percent to $183,300), Davenport, Iowa (down 11.3 percent to $103,300) and Sarasota, Fla. (down 11.3 percent to $311,400).
(CNNMoney.com)