As the economy recovers from this year’s health crisis, 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. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:

“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth.”

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. Across the country, real estate clearly makes a significant impact (see map below):

Economic Impact of a Home Sale

In Florida, the real estate industry accounted for 22% of the gross state budget in 2019. The total economic impact of a home sale is $77,291. This includes expenditures that result from a single home sale, including remodeling costs, real estate brokerage, mortgage lending and title insurance.

Economic Impact of a Home Sale in Florida

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.

Bottom Line

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.

Complimentary Home Evaluation Consultation

As your home is a major asset in your financial portfolio, we would like to offer you a Home Evaluation Consultation to give you the opportunity to learn about your home’s value from a professional real estate advisor.

Why is it important to know the current value of your Home?

  1. To determine the equity you have in your home.
  2. To ensure that your insurance coverage is adequate for replacement.
  3. To evaluate your overall financial plan — especially considering current low mortgage interest rates.
  4. To potentially access funds for deferred maintenance and/or upgrades to further increase your home’s value.
  5. To evaluate whether your current home is providing you with the lifestyle you desire.

We are here to advise you and look forward to connecting in the future. Please feel free to call/text/email any our our team members, or use the contact form below.

 

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