Real Estate Is a Driving Force in the Economy!!

Dated: November 6 2020

Views: 157

Real Estate Is a Driving Force in the Economy

As the economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.

Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:

“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth.”

These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):Real Estate Is a Driving Force in the Economy | Keeping Current MattersIn addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.

Bottom Line

The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time.  Best of all, the housing market is making a significant impact as the economy recovers.

Blog author image

Jeremy Cupp

As a John Maxwell Certified Coach, Teacher, Trainer, and Speaker, I can offer you workshops, seminars, keynote speaking, and coaching, aiding your personal and professional growth through study and pr....

Latest Blog Posts

Where do I start in the home-buying process?

It's August already and my favorite time of the year is right around the corner... football season!!! Whether it's that first Friday night under the lights, or the first Saturday afternoon at Donald

Read More

The Crazy Sellers Market in Northwest Arkansas!

What makes our market so crazy right now and is something that is discussed frequently in the industry’s circles is the lack of available homes for sale. And the fact that there are far more

Read More

Selling Your House? Make Sure You Price It Right!!!

There’s no denying we’re in a sellers’ market. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the

Read More

The Truths Young Homebuyers Need To Hear!!!

For many young or first-time homebuyers, purchasing a home can feel intimidating. A recent survey shows some homebuyers ages 25 to 40 may be unsure about the homebuying process and what

Read More