It is quite illuminating to look back to early 2020 and notice what has gone on in the housing market since then.
Just about one year ago to date, a national emergency was declared due to the worldwide COVID-19 pandemic. As a result of a locked down economy, US unemployment skyrocketed to almost 15%.
At the moment, mid-March 2021, the economy is recovering and the US has regained more than half of the jobs that were originally lost, even though some businesses and schools are still struggling to open.
Despite these past and current challenges, the one industry that has proven to be a tailwind, helping to counter so many headwinds, is residential real estate. In remarkable ways, the housing market has flourished in these last 12 months; sales are up, prices are appreciating, and more new homes are being built.
The housing market has been a pillar of strength in an otherwise slowly recovering economy. As in a more balanced economic state, the sales of both existing homes and new homes have significantly prospered many real estate-related industries.
The following graphic breaks down the numbers.
On the average, the following was reported according to recent research by the National Association of Realtors (NAR):
- The national average economic impact of one existing home sale is approximately $40,000.
- A single newly constructed home had an economic impact of $88,416.
Real estate has done more for our economic wellbeing than virtually any other industry over the last year. It’s been a beacon of light during a very challenging time in our nation’s history.
Whether buying a newly constructed home or one that already exists, making a real estate move has a positive economic impact on one’s local community, and ultimately on individual and collective American Dreams.