Study shows average home sale yields $46,400 in additional consumer spending
There’s little doubt in the minds of most Canadians that real estate is a driving force in our national economy. However, you may be surprised to learn just how great the impact really is. According to a recent study commissioned by the Canadian Real Estate Asssociation (CREA), the resale housing industry in Canada generated more than 202,000 jobs and an average of $22.3 billion annually in various economic spinoffs in the period from 2006 and 2008.
The report says each residential MLS® transaction generated an average of $46,400 in additional consumer spending in the period from 2006 to 2008. This included the purchase of furniture and appliances, moving costs, renovations, services, and taxes. By comparison, from 2004 to 2006 the average transaction yielded $32,200 in additional consumer spending. That’s a significant increase within a very short period of time and the Canadian economy earns the benefit.
The new study says the economic impact of each MLS® sale varies by province or region, from a high of $60,200 in British Columbia to $28,925 in Atlantic Canada. The report notes the spending relates to the cost of moving from one home to another and for renovations after moving in – it does not include any renovation expenditures by sellers to prepare properties for sale. As your local Coldwell Banker® real estate professional can tell you, such costs are a typical part of the real estate process. If you factored those expenditures in, the already tremendous contributions Canada’s resale housing industry makes to the economy would be greater still.
Real estate is also a major driver in job creation. The study shows that an average of 202,750 jobs were created in Canada each year covered by the study as a direct result of resale housing transactions, says CREA. So, if you’re buying or selling a home in Canada, you can do it with the knowledge that your transaction is helping to drive the economy and create jobs for Canadians!