By: Guest Author, Virginia REALTORS® Chief Economist, Lisa Sturtevant, PhD
The typical home sale in Virginia generates $92,611 in economic activity.
Home sales have a significant economic impact for several reasons:
First, for every home sale, there is income generated from the real estate industry, including commissions, fees and moving expenses.
Second, a home purchase leads to other expenditures, including spending on furniture and remodeling.
Third, there are economic impacts called “multiplier effects”, resulting from a home sale. The multiplier effect accounts for the fact that income earned in other sections of the economy as a result of a home sale is recirculated into the economy.
Finally, new home sales induce demand for new home construction and the value of that new home construction is part of the economic impact.
The National Association of REALTORS® produced an annual analysis of the economic impact of a typical home sale. See the data for Virginia.
Any questions? Email me! firstname.lastname@example.org