Average home sale yields $46,400 in additional consumer spending
OTTAWA, April 27 /CNW Telbec/ - 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(R) 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(R) 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
"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(R) systems in Canada. The 2008 national MLS(R)
report from The Canadian Real Estate Association says there were 462,734
residential properties sold through the Multiple Listing Service(R) last year.
The complete updated Clayton Research report is available in PDF format
at www.crea.ca or by sending an email to firstname.lastname@example.org.
The Canadian Real Estate Association (CREA) is one of Canada's largest
single-industry trade associations, representing more than 96,000 REALTORS(R)
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(R) (MLS(R)) trademark, and is co-owner in Canada of
the REALTOR(R) trademark.
For further information:
For further information: Gregory Klump, CREA Chief Economist, (613)
237-7111, (613) 219-7896, email@example.com; Bob Linney, CREA Communications
Director, Cell: (613) 301-2219, firstname.lastname@example.org