What's the total economic impact of a typical home sale in OUR state.?
Historically real estate has played an important role in the U.S. economy.
One reason for the economy’s sluggish recovery has been problems in the mortgage finance sector that have constrained a traditional housing-led expansion.
Each home sale results in additional expenditures for remodeling , appliances, services, and furnishings and builders respond by adding new inventory as supplies wane.
The income generated by these expenditures results in additional expenditures from employees of these industries.
The latter process is known as the economic multiplier.
Furthermore, rising home values have a strong wealth effect where consumers will spend more of their income if they feel confident that rising home prices are expanding their personal wealth....
