COVID 19 IMPACT ON THE U.S. RESIDENTIAL REAL ESTATE MARKET IN 2020

 The COVID-19 pandemic significantly impacted the U.S. residential real estate market in 2020 but not in the way everyone expected.

In April and May, while buyers and sellers were unsure of what was going to happen due to the Covid-19 virus, the real estate market slowed. Both buyers and sellers were worried about being exposed to the virus and lenders were hesitant to lend as employer layoffs soared.  

But by July the real estate market had improved dramatically across most states.  

What helped create this change?   To name a few...

-       * Increased buyer interest - Extended COVID-19 restrictions such as “shelter in place               orders” put in place by government entities, employers work from home policies and school     closures forced families to share limited space at home. Since there was no longer a need       to be close to the office and / or their current living space was not conducive to working           from home or for their children to learn online it was a perfect opportunity to make a move       to a more desirable area or to a larger home.

-       * Government Stimulus Package - The Federal Reserve stepped in with a broad array of         actions to limit the economic damage from the pandemic, including up to $2.3 trillion in             lending to support households, employers, financial markets, and state and local                       governments. 

   * Mortgage interest rates at an all time low - By July, the 30-year fixed rate mortgage fell           below 3% for the first time!  Record-low mortgage rates caught the attention of                         potential home buyers. Households that hadn’t lost income during the pandemic were               saving money on commuting, entertainment and vacations found themselves with                     more money to invest in real estate.

   * Real estate industry increased use of Technology - Virtual showings became the norm. At     a time when in-person showings were inadvisable or prohibited, alternative marketing               opportunities such as livestreaming or online virtual tours were made easily                               available for buyers to view the home. In addition, lenders, appraisers, inspectors, escrow       and title companies had to change to meet pandemic imposed restrictions.

In this series we will continue to explore what the experts are saying about the U.S. residential real estate market in 2021 and how this may influence changes to your relocation policies surrounding real estate.

Brexit and Covid – the perfect storm continuing to hit International relocation

 

2021 has begun and after a torturous 2020 we all hoped the impact of Covid would be diminishing by now, instead it’s on the rise again globally. Into the mix for UK and Europe comes Brexit that adds another wave of turbulence to an already difficult service delivery arena.

The impact to international relocations as a result of these two elements alone is significant. As a minimum, costs have and will continue to increase for the shipment of household goods. All flights are limited not only for passengers but also for cargo therefore clients who authorise airfreights within their global mobility polices are witnessing substantial cost increases. Ports are gridlocked with empty containers grounded in the wrong port therefore resulting in container shortages and long delays to container deliveries. Standard shipping lanes have diminished adding to the major delays in sailing schedules. Historic timescales for the delivery of an assignee’s shipment have been turned upside down. In addition, immigration rules and documentation requirements are constantly changing with visas rules being amended at very short notice. Setting clear and transparent expectations with assignees is increasingly difficult simply because we are working with the unknown and unprecedented.

Household goods and visa & immigration are just 2 relocation services negatively impacted by Brexit and Covid. Over the next few weeks, I will expand on these 2 specific areas and add to them to cover other areas of international relocation negatively impacted such as the effect on European borders, changes to customs and immigration documentation and what I believe are potential work arounds in these testing times.

 

Relocation For A Retention Strategy? 

You are probably thinking oh that’s old news…but wait, second thought…is it?   Certainly this is not a new concept by any stretch, however, one word….COVID!!  This could be simply described as the biggest game changer….good or bad!!  It certainly has brought to light the endless possibilities of employees working from home as well as the potential of a greater talent pool to attract the right employees, etc. 

The other side of the coin is those current employees that are part of your very important talent pool you want and need to retain.  A lot of employees are likely having the “ah ha” moments too.  “I want to retire in…Montana, or on a sunny beach, or ski slopes in Vail Colorado…now I can work from anywhere”.  As employers and employees seek the expanded employment opportunities, employers will likely require engaging frequently in offering a reduced package of relocation benefits to retain that employee and allow them to work from a location that is more desirable for any number of reasons…closer to family, health benefits, weather, retirement in the near future, affordability, cost of living…just to name a few!

Paragon Relocation Blog - Coming Soon!

We are excited to share some news with you! 

Coming Soon we will be launching the Paragon Relocation Blog. 

Check back with us in the new year for all sorts of relocation topics to read from, provided by many of our relocation experts. 

Subscribe now so you don't miss a post! 

Coming Soon!

 

We will be launching Paragon Relocation's new blog in the beginning of 2021.

Subscribe now so you don't miss a post!