Recently the research team at the National Association of Realtors (NAR) looked at studies done by the Bureau of Economic Analysis, the Census Bureau, Macroeconomic Advisors and the Joint Center for Housing Studies at Harvard. After reviewing the data, they determined the total economic impact of a typical home sale in the United States is an astonishing $56,464.
Here is the breakdown of their report:
Economic Contributions are derived from:
Home construction
Real estate brokerage
Mortgage lending
Title insurance
Rental and Leasing
Home appraisal
Moving truck service
Other related activities
HERE IS THE BREAK DOWN OF REVENUE when a House is Sold in the United States:
$14,958 – Income generated from real estate related industries
$5,647 – Additional expenditure on consumer items such as on furniture, appliances, and paint service
$3,509 – Expenditure on remodeling within 2 years of purchase
It generates an economic multiplier impact. There is a greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be: $11,575
Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy which is estimated in the U.S. to be: $20,774. With all the new homes for sale in Bethesda, we are doing our fair share to help the economy!
When you add the numbers up it comes to over $56,000!
No wonder the housing industry is thought to lead the US economy into and out of recessions! If you want to contribute to this economic recovery, please give the Lise Howe Group a call. We can be reached at 240-401-5577, and we specialize in helping buyers and sellers in Bethesda and Chevy Chase, and people relocating to the DC metro area!
