Real Estate drives the Canadian economy

It should come as no surprise to most of us that resale housing transactions across Canada generate significant economic activity. The purchase and sale of homes generates fees to professionals such as lawyers, appraisers, real estate agents, surveyors, etc. as well as taxes and fees to government. And when Canadians move to another house, they typically purchase new appliances or furnishings and undertake renovations that tailor their new home to their own specific requirements. This all helps to drive the economy in a big way.

A Canadian Real Estate Association (CREA) study published in June 2007 estimated that during the previous 2-year period, a total of $32,200 in ancillary spending (i.e., spending by purchasers on items other than the actual house and land) was generated by the average housing transaction in Canada. Considering the average of 476,063 home sales processed annually through MLS® during that same period, ancillary spending attributable to moving into another house
totaled over $15.3 billion per year across Canada – a significant contribution to the economy. And the impact would be even greater by today’s standards.

On the international front, there’s more good news for the economy and for housing. A recent G-20 monetary funding proposal and a massive Economic Stimulus plan in the U.S. that has positioned our number one trading partner for an economic recovery are sure to have positive repercussions here. All these initiatives bode well for the future of our Canadian economy overall, and the housing industry in specific.

Of course, the buying and selling of homes drives the economy in other ways far beyond the purchase of an individual home. As home ownership increases and communities grow, there is a corresponding growth of retail outlets, schools, recreational and entertainment facilities, places of worship and infrastructure. As our population matures, you’ll see the development or assisted living and mature lifestyle communities to meet the needs of this increasingly important group of homebuyers and sellers. There are few industries in this country that can exert such a profound impact on the economy.

Today, historically low interest rates and lowering prices in some markets have resulted in some of the most affordable housing seen in Canada in many years. So why not take advantage of this window of opportunity to grow your personal equity and help drive the economy while you’re at it? Contact your local Coldwell Banker® sales representative to find out more about the great opportunities offered by today’s market – and how to tap into them!

Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21 
Oakville, Ontario
Canada

L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)