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 agents, 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 a home.
We’re all being impacted in different ways by the effects of the coronavirus. If you’re in a position to buy a home today, know that you’re a major economic force in your neighborhood.
Every year the National Association of Realtors (NAR) shares a report that notes the full economic impact of home sales. This report summarizes:
Real estate has been, and remains, the foundation of wealth building for the middle class and a critical link in the flow of goods, services, and income for millions of Americans. Accounting for nearly 18% of the GDP, real estate is clearly a major driver of the U.S. economy.
How is the housing market in your state affecting the local economy? NAR calculated 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.
Nationwide, NAR estimates that each home sale at the median added $88,500 to the economy in 2019 and it is continuing to rise.
When you buy a home, you’re making an impact. You’re fulfilling your 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 on the chart, the impact is almost double when you purchase new construction, given the extra labor it requires to build the home.
The bottom line is whenever you purchase 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 keep your own process moving forward so you’re set when the time is right for you. Call us at 832-744-7191 to help you keep your home search – and your local contributions – on track.
Data courtesy of NAR and Keeping Current Matters