Study
shows economic impact of home sales
OTTAWA – April 27th, 2009 – The resale housing industry
in Canada generated more than 202,000 jobs and an average of $22.3 billion
annually in various economic spinoffs in the period from 2006 and 2008,
according to a study prepared for The Canadian Real Estate Association by Altus
Clayton.
The report says each residential MLS®
transaction generated an average of $46,400 in additional consumer spending in
the period from 2006 to 2008. This included the purchase of furniture and
appliances, moving costs, renovations, services, and taxes. By comparison, from
2004 to 2006 the average transaction yielded $32,200 in additional consumer
spending. In the period from 2002 to 2004, it was $24,697.
The new study says the economic impact of
each MLS® sale varies by province or region, from a high of $60,200 in British
Columbia to $28,925 in Atlantic Canada. The report notes the spending relates
to the cost of moving from one home to another and for renovations after moving
in – it does not include any renovation expenditures by sellers to prepare
properties for sale.
“Real estate continues to be one of the major
engines driving Canada’s economy,” said CREA President Dale Ripplinger. “This
study shows the tremendous contributions Canada’s resale housing industry makes
to the economy. When Canadians move, they typically buy new appliances or
furnishings, and renovate in various ways to tailor their home to their
specific requirements.”
“Purchases and sales of homes trigger
additional expenditures that have broad economic impacts,” said CREA Chief
Economist Gregory Klump. “Job creation is also a
major factor of the sale of a home. The study shows that an
average of 202,750 jobs were created in Canada each year covered by the
study as a direct result of resale housing transactions.”
The economic impact of the market for
existing homes is also reflected in the sales processed by MLS® systems in
Canada. The 2008 national MLS® report from The Canadian Real Estate Association
says there were 462,734 residential properties sold through the Multiple
Listing Service® last year.
The complete updated Clayton Research report
is available in PDF format at www.crea.ca or
by sending an email to info@crea.ca.
The Canadian Real Estate
Association (CREA) is one of Canada’s largest
single-industry trade associations, representing more than 96,000 REALTORS®
working through more than 100 real estate Boards and Associations. CREA
supports growth that encourages economic vitality, provides housing
opportunities, respects the environment and builds good communities and safe neighbourhoods. CREA represents its members at the federal
level, and defends the public right to own and enjoy property. The Association
also owns the Multiple Listing Service® (MLS®) trademark, and is co-owner in
Canada of the REALTOR® trademark.