Return-to-work policies enforced across the country are having an additional detrimental effect on an already challenging housing market. According to a survey by Redfin, a staggering 10% of home sellers are moving because they are being called back to the office. This emerging cause of relocation raises concerns as some sellers could face real estate losses of up to $100,000 in their attempt to relocate.
Danielle Hale, the chief economist at Realtor.com, highlighted that a quarter of recent homebuyers did not know their long-term working situation. Among them, 8% stated that they would sell their homes if they were required to return to the office full-time. However, three times as many respondents indicated that they would seek new job opportunities rather than sell their houses.
As companies face post-COVID challenges, the trend of returning employees to the office is expected to accelerate. Joe Camberato, CEO of NationalBusinessCapital.com, suggested that sellers consider renting their homes instead of selling at a loss. Renting could help build equity, pay down the mortgage, and potentially wait for a more favorable market to sell in the future.
While it remains to be seen whether the percentage of home sales driven by return-to-work policies will continue to grow significantly, experts note that high-amenity markets that experienced rapid demand growth during the pandemic may be more affected. Local market trends should be carefully assessed before making a decision to sell or wait.
In summary, the enforcement of return-to-work policies is impacting the housing market, leading some individuals to sell their homes and potentially face significant real estate losses. Exploring alternative options, such as renting, may help mitigate these losses. Additionally, it is essential to consider local market trends when making decisions in this shifting landscape.
– Redfin Survey
– Danielle Hale, Realtor.com
– Joe Camberato, CEO of NationalBusinessCapital.com
– Jason Soren, American Institute for Economic Research