The Value of Real Estate on Our Economy

Recently the research team at the National Association of Realtors (NAR) looked at studies done by the Bureau of Economic Analysis, the Census Bureau, Macroeconomic Advisors and the Joint Center for Housing Studies at Harvard. After reviewing the data, they determined the total economic impact of a typical home sale in the United States is an astonishing $56,464.

Here is the breakdown of their report:

Economic Contributions are derived from:

■         Home construction

■         Real estate brokerage

■         Mortgage lending

■         Title insurance

■         Rental and Leasing

■         Home appraisal

■         Moving truck service

■         Other related activities

Burlingame Real estateWhen a House is Sold in the United States:

$14,958 – Income generated from real estate related industries

$5,647 – Additional expenditure on consumer items such as on furniture, appliances, and paint service

$3,509 – Expenditure on remodeling within 2 years of purchase

It generates an economic multiplier impact. There is a greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be:$11,575

Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy which is estimated in the U.S. to be:$20,775

When you add the numbers up it comes to over $56,000!

April 2013 Burlingame Real Estate Market Stats

The best time to sell is when inventory is low. Typically, selling your home when inventory is low provides you multiple offers to choose from. Yet, it’s not the quantity of offers that matter, it’s the quality of offers that matter and that’s why having a realtor with excellent negotiating skills increases your volume of quality offers. Needless to say, today’s Burlingame real estate market is a Seller’s Market. So, if you are considering a home change now is a good time to sell.

Here are the latest statistics in the Burlingame real estate market which bode well for the seller.  In short, there are few homes on the market and prices have jumped up.

April 2013 Burlingame Real Estate MarketKeep in mind, it’s nice to have a trusted advocate to help you navigate selling or buying a home. Please feel free to contact us if you have questions or just want to explore your options.