May 31, 2018 Our thanks to today s sponsor:

Transcription

1 May 31, 2018 Our thanks to today s sponsor:

2 Top Real Estate Trends and their Impact to Your Relocation Program

3 WORLDWIDE ERC WEBINAR DISCLAIMER The views, opinions, and information expressed during this webinar are those of the presenter and are not the views or opinions of Worldwide ERC. Worldwide ERC makes no representation or warranty with respect to the webinar or any information or materials presented therein. Users of webinar materials should not rely upon or construe the information or resource materials contained in this webinar as legal or other professional advice and should not act or fail to act based on the information in these materials without seeking the services of a competent legal or other professional.

4 Webinar Instructions Technical difficulties? Dial , or questions to Sound Troubles? If your sound quality is poor, check your Wi-Fi strength or connect via cable. Call in using the phone number listed under the Event Info tab in the upper left-hand corner. To return to meeting room window: If you are in full screen mode, you may return to the meeting room window by clicking the View Meeting Room button located at the bottom left corner of your screen.

5 Q&A Instructions Submit questions through Q&A dialogue box Box is located in lower right corner of screen Do not use the Chat Box Be specific You may submit your question at any time Q&A Dialogue Box:

6 CRP Certification If you are a CRP seeking CE credit for this webinar, you may utilize the CRP credits management portal, available online under Sign In/Join. The seminar ID is (All (S)CRPs must apply for credit and submit the $8 processing fee to receive CE credit)

7 Today s Presenters Meighan Dutt, CRP, GMS Senior Account Manager Guaranteed Rate Affinity Marilynn Giglio-Knapp VP, Account Management Cartus

8 Today s Topics Snapshot of the Market Real Estate Market Home Sale Growth Affordability Inventory Supply Rental Market Mortgage Industry Trends and Influencers on Real Estate

9 Real Estate Market Snapshot Median Home Price Unemployment Underwater First-time Buyers Listing Inventory Total Sales Mortgage Rates Median home price: $257,900 in April Up 5.3% from April 2017 Unemployment: 3.9% October 2009: 10% at peak 2.5 million, or 4.9% of homeowners 2010: 27.3% at peak First time homebuyers pulling out their checkbooks 2.1 million did so in 2017 About 300,000 more than usual Months of listing inventory: 4 months 6 months supply equals a balanced market Total home sales: 5.60 million Seasonally adjusted up 1.2% YOY Rates hovering around 4.5% for a 30 year fixed Expected to stay in this range and perhaps go a little higher in 2018 Source: RealtyTrac; Zillow; NAR; Bureau of Labor

10 Year-Over-Year Market Growth Q12017 vs. Q % YOY Increase

11 Median Price of Existing Home Sales

12 More Affordable Cities

13 10 Housing Markets Where Bidding Wars are Heating Up

14 Existing Home Sale by Region 12 % 22 % 23 % 43 % Northeast Midwest West South

15 Housing Supply at the National Level

16 Is the American Dream A Nightmare?

17 Homeownership Rates Increasing

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19 The Rise of Rental Rates

20 Mortgage and Rent Affordability Nationwide, the share of income spent on a mortgage is below historic norms. Average Share of Income Spent on Rent Average Share of Income Spent on Mortgage 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% %

21 Housing Affordability Overall, mortgage affordability the share of income necessary to afford a typical mortgage payment looks reasonable in most markets, but affordability is suffering, especially at the bottom end of the market, as home values rise and incomes fail to keep pace. As mortgage interest rates rise, mortgage affordability will also suffer, although there s some headroom for rates to rise before this really becomes problematic. Unlike mortgage affordability, rental affordability is much worse today than it was historically, though the recent slowdown in rent growth has helped somewhat. Poor rent affordability is worrisome, as more money devoted to rent makes it more difficult to save for homeownership.

22 How Does this Relate to Mobility Positive Growth Low Inventory Affordability Issue Healthy job market Increased home sale values Bidding wars Increase exceptions Rent vs. purchase Extended time to complete relocation New home purchase benefits to renters Repayment agreement

23 LOCATION. LOCATION. LOCATION.

24 Mortgage Interest Rates A Perspective

25 Conforming Loan Limits

26 The Rise of the Digital Mortgage

27 Borrowers are Demanding More OnLine

28 Effects on Mobility Rates increasing will have an effect on purchase power Will employees look for MIDA programs Rise of Digital Mortgage Platform makes process fluid and convenient for those relocating Conforming Loan Limit increase gives relief in costlier markets where many transferees move

29 2018 Trends That Could Reshape Housing Student Loan Debt Estimated years needed to save 20% down payment 7.6 Years College Grad No Debt No more 50-mile rule, no more one-year rule simply stated, no more moving expense deductions are available in Years College Grad With Debt Tax Reform Effects on Relocation The total average cost to move employees in 2018 should increase by approximately 10-15%; companies need to budget accordingly Years No College The supplemental payroll withholding rate has been reduced from 25% to 22%, and from 39.6% to 37% on supplemental payments exceeding one million dollars. Rise of the Urban Suburb 1. West Chester, PA 2. Arlington, MA 3. East Meadow, NY 4. Skokie, IL 5. Morton Grove, IL 6. Jacksonville, FL 7. Garden City, NY 8. Mountain View, CA 9. Royal Oak, MI 10. Brea, CA

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31 Thank you for attending! Visit the Worldwide ERC web site at or contact Worldwide ERC for more information on these topics