As we celebrate that the Canadian economy is beginning to heal, consider the fact that the sale of a single home can boost the economy substantially.
The ripple effect set off by the sale of each house is far-reaching, as indicated by a new report for The Canadian Real Estate Association. It found that between 2006 and 2008, about $46,400 in ancillary spending (on items other than the house and land) was generated by the average housing transaction in Canada. Per transaction ancillary spending varied somewhat by region, ranging from $28,925 per home purchase in Atlantic Canada, to $60,200 per home purchase in BC.
Considering the average of 480,120 home sales processed annually through MLS® during the period of 2006 to 2008, ancillary spending attributable to moving house totaled more than $22.3 billion per year across Canada. (Nearly half of these spin-off benefits were generated in Ontario alone where home buyers contributed $9.3 billion to the economy.)
The pattern of ancillary consumer spending generated by residential real estate transactions has tracked upwards in recent years:
- 2006-2008 $46,400
- 2004-2006 $32,000
- 2002-2004 $24,697
- 2000-2002 $19,760
Direct and indirect employment resulting from housing sales is also significant. Some 202,750 jobs are estimated to have been generated by average annual MLS® resale housing activity in Canada between 2006 and 2008, according to the study conducted by Altus Group Economic Consulting.
Jobs created or maintained by the sale of homes include:
- mortgage brokers
- house appraisers
- home inspectors
- energy auditors
The next time you buy or sell a home, congratulate yourself for helping the Canadian economy.