Real Estate Is a Driving Force in the Economy
The economy took a major hit when businesses and life was shut down to protect from the corona virus. As the economy recovers, the housing market is playing a leading role in the turnaround.
It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.
Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. It is amazing to see how fast homes are moving!! And sometimes extremely frustrating for buyers!
This demand is being driven by those who want to take advantage of historically low mortgage rates.
These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year.
To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Lumber prices are going up too! Often times $30,000-50,000 a home!
Across the country, real estate clearly makes a significant impact (See map below):
In addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well. Our Backyard Chat: The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time. Best of all, the housing market is making a significant impact as the economy recovers.
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