What Is the Strongest Tailwind to Today’s Recovering Economy?
Last year started with a bang. Unemployment was under 4%, forecasters were giddy with their projections for the economy, and the residential housing market had the strongest January and February activity in over a decade.
Then came the announcement on March 11, 2020, from the World Health Organization declaring COVID-19 a worldwide pandemic. Two days later, the White House declared it a national emergency. Businesses and schools were forced to close, shelter-in-place mandates were enacted, and the economy came to a screeching halt. As a result, unemployment in this country skyrocketed to 14.9%.
A year later, the economy is recovering, and the U.S. has regained more than half of the original lost jobs. However, some businesses are still closed, and many schools are still struggling to reopen. Despite the past and current challenges, one industry has proven to be a tailwind helping to counter all of these headwinds to our economy. That industry is housing. Remarkably, the residential real estate market (including existing homes and new construction) has flourished over the last twelve 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.
How does the real estate market help the economy?
At the beginning of the pandemic, the National Association of Realtors (NAR) released a report that explained:
“Real estate has been, and remains, the foundation of wealth building for the middle class and a critical link in the flow of goods, services, and income for millions of Americans. Accounting for nearly 18% of the GDP, real estate is clearly a major driver of the U.S. economy.”
The report calculated the total economic impact of real estate-related industries on the economy and the expenditures that resulted from a single home sale. At a national level, their research revealed that a single newly constructed home had an economic impact of $88,416.
Here’s how it breaks down:
The map below shows the impact by state:
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 you’re buying a newly constructed home or one that already exists, you’re making a positive economic impact in your local community – and it’s a step toward your homeownership goals as well.
Peek into My Crystal Ball
As we move forward…it’s been tough as we navigated through all the changes. Putting your dream of a new home on HOLD shouldn’t be one of them. Now more than ever knowledge will be your negotiation power. There are 3 parts to making the most money on the sale of your property. 1. Know the Market You’re In 2. High Tech Digital Marketing 3. My Blueprint to Your 🔑 to 🏡 Selling Success. No 2 homes are alike, and agents need to 🛑 marketing 1 size fits all. It’s important to separate your property from the competition. Equally important, you want to keep the buyer focused on your property and not get lost in the shuffle. Having a digital omnipresence on serval platforms is you 🔑 to your success.
If you have any questions, contact us: Chatbot 🤖 at the bottom. Contact me by Email 📩 or my Cell 📲 @ 248-343-2459. With all the doom and gloom of the virus, one thing history has shown us, this will NOT define us. Stay safe! Please share your thoughts below or what future article you would like to see. Your opinion is important to us…. this site is for you ❣
Could you help me Find my Perfect Ideal Home!
Please tell me what you’re looking for in your new Ideal Home…I can help you find the newest and best homes on the market.
Let us know what we can do to help you work your way through the Buying & Selling Puzzle.
Website Development, Production, and Content by Pam Sawyer @ Team Tag It Sold © 2017 All Rights Reserved