Real estate sales make valuable contribution to Colorado economy

Posted by Tom Kalinski Founder RE/MAX of Boulder on Monday, December 15th, 2014 at 9:14am.

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;

  • Unemployment increases;

  • 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.

Tom Kalinski 
Owner and Founder
RE/MAX of Boulder

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