Reluctance to Move Could Slow Recovery
Falling home prices have cut into executive relocations, according to a report released Thursday.

Economists say that companies’ inability to persuade executives and new hires to move could slow an overall economic recovery, but unless employees can sell their homes at prices they see as reasonable, many are reluctant to switch locations.

“Continued weakness in the housing market is undoubtedly the biggest factor suppressing relocation,” says John Challenger, chief executive officer of Challenger, Gray & Christmas in the report. “Job seekers who own a home — even if they are open to relocating for a new job — are basically stuck where they are if they are unable or unwilling to sell their homes without incurring a significant loss.”

Source: CNBC, Joseph Pisani (10/28/2010)