In April of this year, CMHC reported that the resale housing industry in Canada has generated more than 202,000 jobs and an average of $22.3 billion annually in various economic spin-offs in the period from 2006 and 2008. As a point of interest, each residential MLS® transaction has generated an average of $46,400 in additional consumer spending during this period. This includes the purchase of furniture and appliances, moving costs, renovations, services, and taxes.
The study suggests that the economic impact of each MLS® sales varies by province or region, from a high of $60,200 in British Columbia to $28,925 in Atlantic Canada. The report notes that 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. It seems likely that this would add meaningfully to the total expenditures incurred. In my experience, there are not many who put their home on the market without spending at least $1000.
There is no doubt that Canadians on the move continues to be one of the major engines leading to job creation and economic prosperity. Many home buyers will typically buy new appliances or furnishings, and renovate in various ways to tailor their home to their specific requirements. All of this activity helps keep the money flowing throughout the economy. This indicates that if people stopped moving, the economy would slow significantly and many jobs would be lost.
In my next post, I plan to tell you how to save money by investing in home renovations before you list your home. People who spend money on their home in order to prepare it for the market can save hundreds of dollars by doing two simple things. Come back soon and get the truth about renovation expenses. Or if you prefer, subscribe to my blog now and receive any updates as soon as they are posted.
R. Greg Osmond is a Platinum Award winning Realtor serving St. John’s and surrounding areas, Newfoundland and Labrador for over 20 years and can be reached at 709-895-2500. Visit http://www.rgregosmond.com/ for further information.
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