New Survey Reveals Americans Forced to Choose: Sell Home at Loss or Lose Job
According to a recent survey conducted by Redfin, the increasing number of return-to-office mandates is leaving one in ten homeowners with a tough decision – sell their home at a loss or risk losing their job. Real estate agent Shauna Pendleton shared the story of her clients who are being forced to sell their home in Boise, Idaho, after just one year because their employer, based in Seattle, is requiring them to return to the office. Unfortunately, as they purchased the property when prices were at their peak, they are likely to face a significant loss. Pendleton stated, “They’ll probably have to take a $100,000 loss on their home. Their new house in Seattle won’t be anything close to the size of their property in Boise, and their mortgage rate will be much higher.”
The latest data from Freddie Mac, a government-backed lender, shows that 30-year fixed-rate mortgages have soared to 7.18 percent, compared to an average of 6.02 percent just a year ago. This increase in mortgage rates has led to fewer people willing to sell their homes, resulting in a greater number of individuals being forced to sell due to necessity. A Freddie Mac survey revealed that 82 percent of property shoppers feel “locked into” their homes, with many homeowners staying put in order to maintain their current, lower mortgage rates. Additionally, figures from the Atlanta Federal Reserve indicate that the housing market’s affordability has dropped to levels not seen since the 2008 financial crisis.
These findings come at a time when more companies are urging employees to return to the office after a long period of remote work prompted by the Covid-19 pandemic. JP Morgan Chase & Co, for example, has ordered managers to resume full-time office work to ensure their presence for “impromptu meetings” and “immediate feedback.” Other companies, like Davis Polk & Wardwell LLP, a major New York law firm, have warned employees that failing to comply with their three-day office attendance policy could result in reduced bonuses. Zoom, the popular video conferencing company, has also called for employees living within a 50-mile radius of a Zoom office to work onsite at least 40 percent of the time. Zoom CEO Eric Yuan emphasized that in-person conversations are essential for great discussions, as remote meetings tend to lack the same level of engagement and debate.
In summary, return-to-office mandates due to the pandemic are putting homeowners in a difficult position, forcing them to choose between financial loss or losing their jobs. The real estate market is also impacted by soaring mortgage rates and decreased affordability. As companies push for in-person work, individuals face the challenge of adapting to new workplace expectations.
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