Home sales energizing overall local economy
So far this year, the sales volume for existing home sales reported by NETAR’s Home Sales Report is $1.9 billion. While that’s a big number, there’s more to the real estate’s impact on the local economy story.
According to NAR’s research team, each home sale in Tennessee added another $75,000 to the economy. That impact is income generated from real estate industries, expenditures related to a home purchase, the multiplier of housing-related expenditures, and new home construction.
Since the first of the year, 7,911 sales had closed by the end of October. So, that’s another $593.3 million in the real estate economic impact bucket. NETAR’s numbers are for sales of properties listed on the local Multiple Listing Service, which accounts for 75 to 80% of existing-home sales, so these numbers are low. And, they don’t include new home sales or the economic impact of the commercial real estate marketplace. But it’s enough to illustrate the point that the real estate industry is a major player in local economies.
Locally, real estate has outperformed most other sectors of the regional economy for more than three years.