Will hiring that requires relocation pick up with news like this?

I was reading through the daily real estate news yesterday and this article caught my eye.  Having been in the job market for quite a while, I was told several times, even by John Tesh, that companies were looking to hire people already working, rather than those unemployed currently.  Because these employees are often found in other parts of the country, the ability to recruit and hire them has been hampered by the barriers related to the sale of the current home.

This is a major impediment, the cost of relocating, with so many homeowners underwater due to lower initial down payment requirements.  However, if homeowners get a renewed sense of optimism, we could see a greater willingness to move, impacting the jobs market with the subsequent trickle down impact on unemployment.  This would possibly be due to the unshackling of the homeowner from his or her perception of loss.  In the real estate world, there is still a reluctance by many people to take less than they paid for their homes.  This is actually one factor impacting the rise in home sale prices.  So many of those whose houses who lost value are holding on, while those in more profitable areas of the country are selling.  Higher end homes are also selling.

The real questions still remain unanswered, but there are some words coming out of the real estate business that says the market has hit bottom, and is on the way up.  This, combined with record low mortgage rates may create a situation where the average days on market will decrease.  Mitigating this somewhat is the fact that many of the backlogged foreclosures have begun processing, meaning a possible glut of these homes by early next year.

What does this mean for you as an employer seeking to bring in the best talent from outside?  Well, first, I would recommend using as many analytic tools and good interviewing techniques as possible to assure yourself of a desirable candidate.  Then, you might consider a guarantee on the sale of their home.  Give them the money to pay six months of mortgage or rent payments in the new city, then agree to purchase their home at market value after the time is up.  Make this arrangement prior to their signing with a real estate agent, so that you would not have to pay the commission if their six months with the agent expires. My company can assist you with this plan should you be interested.

Bottom line, if ever there was a time to make a riskier offer to hire from afar this might be it.

DAILY REAL ESTATE NEWS | FRIDAY, JULY 13, 2012
Rebounding home prices are lowering the number of home owners who are considered “underwater” on their mortgage, according to a new report by CoreLogic.

More than 700,000 home owners are no longer considered “underwater,” owing more on their mortgage than their home is currently worth.

At the end of March, 23.7 percent — or 11.4 million — of home owners with mortgages were considered underwater on their mortgage, according to CoreLogic’s latest report. Three months prior, that percentage was 25.2 percent, or 12.1 million home owners.

Mark Fleming, CoreLogic’s chief economist, attributes the decrease to recent gains in home prices, a drop in for-sale inventory, and fewer distressed sales, which are all helping more home owners see the values of their houses increase.

About 1.9 million home owners were 5 percent underwater during the first quarter. If prices continue to inch upward, these owners are expected to climb out of underwater territory, according to CoreLogic.

"While the overall stagnating economic recovery will likely slow [the] housing market recovery in the second half of this year, reducing the number of underwater households is an important step toward reducing future mortgage default risk," Fleming says.

Source: “700,000 Home Owners no Longer Underwater on Mortgages,” CNNMoney (July 12, 2012)