The economic impact of Real Estate

The economic impact of Real Estate

Canada’s real estate market is booming, and that’s good news for most Canadians – and not just home sellers.  The economic impact of a thriving real estate market has a far-reaching ‘ripple effect’ that extends into many aspects of Canadian life.

 A study commissioned by the Canadian Real Estate Association (CREA) and prepared by the Altus Clayton research company for the period of 2006 to 2008, indicated the following:

• Canada’s resale market generated an average of 202,750 jobs each year 
• This represents an average of $2.3 billion annually
• Each residential MLS transaction generated an average of $46,400 in additional consumer spending
• This includes the cost of moving and for post-move renovations after moving in
• The survey does not does not include any renovation expenditures by sellers to prepare their property for sale – if that aspect was included, the economic impact would be even greater.
• The economic impact varied by province – BC was highest with over $60,000 per transaction, while Atlantic provinces generated close to $30,000
• This variation in impact mirrors the level of house prices in the two regions, with BC being the site of Canada’s two most expensive housing markets, Vancouver and Victoria.

So, the next time you see news about a positive real estate market, and you think that has little to do with you --- think again.  Real estate is a cornerstone of the Canadian economy, and we all benefit from a strong and thriving market.   If you’d like more information about the real estate market in your community, contact your local Realtor® or myself, and take advantage of our expert advice.