On Your Market: The economic impact of buying or selling a home
On Your Market
We’re in a changing real estate market, and life, in general, is changing too — from how we grocery shop and meal prep to the ways we can interact with our friends and neighbors.
Even practices for engaging with Realtors, lenders, and all of the players involved in a real estate transaction are changing to a virtual format. What isn’t changing, however, is one key thing that can drive the local economy: buying or selling a home.
We’re all being impacted in different ways by the effects of the coronavirus. If you’re looking to buy or sell a home today, know that you’re a major economic force in the neighborhood. And while we all wait patiently for the current pandemic to pass, there are a lot of things you can do in the meantime to keep your plans on track.
Every year the National Association of Realtors shares a report that notes the full economic impact of home sales. This report summarizes:
“The total economic impact of real estate related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance.”
Here’s the breakdown of how the average home sale boosts the economy:
When you buy or sell a home, you’re making an impact. You’re fulfilling a need for shelter and a place to live, and you’re also generating jobs and income for the appraiser, the loan officer, the title company, the real estate agent, and many more contributors to the process. For every person or business that you work with throughout the transaction, there’s also likely a team behind the scenes making it all happen, so the effort multiplies substantially. As noted above in the circle on the right, the impact is almost double when you purchase new construction, given the extra labor it requires to build the home.
The report also breaks down the average economic impact by state:
That need for shelter, comfort, and a safe place to live will always be alive and well. And whenever you’re able to act on that need, whether now or later, you’ll truly be creating gains for you, your family, local business professionals, and the overall economy.
Whenever you purchase or sell a home, you’re an economic driver. Even if you’re not ready or able to make a move now, there are things you can do to keep your own process moving forward so you’re set when the time is right for you. Contact a local Real Estate Professional to keep your real estate goals — and your local contributions — on track.
Mark Smith is broker and owner of RE/MAX Mountain Living Graeagle and Truckee. Mark can be reached at: email@example.com
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