How Much Is A Home Sale Really Worth to the Economy?

May 29, 2013

Chicago home sales boost economyWe hear all the time that home sales are beneficial for a greater economy, but how do we know how much they are really worth? The National Association of Realtors (NAR) has done the research, and their result is pretty inspiring.

Housing is one of the most versatile and dexterous industries in the U.S, economy, encompassing the finance, real estate, construction and the dozens of complementary industries. So, exactly how much impact does a home sale truly create? Is a dollar figure able to be associated with such a transaction?

Well, according to the NAR, $56,464 is pumped through the economy after each standard home sale. This number may be further broken down, telling us in detail where this money flows into the economy:

  • $20,775 New Home Sale Construction
  • $14,958 Real estate-related expenses
  • $11,575 Spending on restaurants, sporting events, etc.
  • $5,647 Furniture, appliances, etc.
  • $3,509 Remodeling expenses

This sought after number came to be after analyzing home construction, brokerage business, mortgage lending, rental and leasing, title insurance, appraisals, moving truck services and other related costs and activities.

This means that by buying a Chicago new home, we are not only bettering ourselves, but bettering the economy and all of those who surround us. This number not only gives us an answer, but it also gives us hope.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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