Did you ever wonder how much the Housing Market really affects the overall economy? Here’s July Market Update, 2020.
Here’s the deal, nationwide each time someone decides to purchase a home, there is on average of over eighty-eight thousand dollars ($88,000) of economic growth spurring from homes selling into the cities and towns where the homes are sold.
In fact, in California, it’s actually around one hundred seventy-one thousand dollars ($171,000) of economic growth added into the economy in a positive direction. According to NAR (The National Association of Realtors), they calculated the total economic impact of real estate-related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending, and title insurance.
The Average Positive Economic Impact of the sale of just one home in the United States is Eighty-eight thousand, four hundred and sixteen dollars ($88,416). In fact, home sales are going to help our economy recover as it generates income for various industries.
How does this affect us locally?? Crazy times here in real estate here in East San Diego County.
Here is a look at the number of Active listings in many of our East County cities this June as compared to June of 2019.
As you can see, there is quite a decrease in the availability of homes for sale. What does that mean for a seller? It means that sellers in most cases have a lot of power, it’s a Seller’s market.
Buyers are having to compete and we are seeing bidding wars and offers going above asking price. Especially in the lower price points, for example in all of East County there are only 17 single family homes available under Five hundred thousand (500K). You can expect those home prices to get bid up. In fact, in most cases, anything under 600,000 is moving extremely fast.
Any questions or concerns always reach out to us at One World Realty, we would love to serve you.