According to the Colorado Association of Realtors®, the sale of a home has no small impact on the economy.
Here’s an economic breakdown of the impact a Colorado existing home with a median price of $253,300 has:
$67,310: The total income derived from the sale;
$21,177: Income generated from real estate-related industries;
$12,291: The estimated multiplier impact via spending at restaurants, sports games, charitable events, etc.
$4,429: The amount spent on consumer items such as furniture, appliances and paint service;
$44,259 million: How much of the Gross State Product attributed to Colorado’s real estate industry – or 16.3 percent – in 2012.
The association reports that, typically, one new home is built for each existing home sale, and that one-eighth of the value of that new home – estimated to be $29,413 – is added to the economy in Colorado.
If real estate sales decline, the association reports that:
Construction jobs decline;
Real estate prices decrease;
The value of homes decreases whether they are selling;
The value and amount of home equity loans decrease;
Foreclosure rate increases;
Consumer confidence decreases.
Owner and Founder
RE/MAX of Boulder