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Does Real Estate Sales Have an Impact on the Economy?

Most of us out there probably do not think that a Real Estate transaction has any impact on the local and national economy. As a matter of fact it has a very large impact on the local economy. A news release from BCREA (British Columbia Real Estate Association) explains the impact real estate has on the GDP and how it creates jobs.

British Columbia Real Estate Association (BCREA) say the economic impact is substantial of Multiple Listing Service® (MLS®) residential sales to the provincial economy in 2007. A typical MLS® residential sale generated nearly $42,000 in economic output, $20,000 in Gross Domestic Product (GDP) and $13,000 in household income. Tax revenues to federal, provincial and municipal governments exceeded $9,800. A typical MLS® residential sale also generated 0.28 full time equivalent jobs (FTE).

BCREA further explains that MLS® residential sales provide a significant contribution to BC economy. Every 100 transactions in 2007 generated nearly $4.2 million in economic output and $2 million in GDP.

While a single home sale has a relatively small impact, the cumulative effect of thousands of transactions is noteworthy,

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