Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey/span by the NATIONAL ASSOCIATION of REALTORS®. Sales increased from the third quarter in 48 states and the District of Columbia; 32 states even saw double-digit gains.
Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008.
Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier. Read the rest of this entry »
The economic impact generated from the sale of one home in the Tulsa area equals $46,289
The National Association of Realtors, NAR, estimates that each home sale generates $63,101 (national average) of economic impact (2008). Each home sale generates about 9% of the sales amount form moving expenses, inpections services and fees. Furnishing and refurbishing/remodeling expenses average slightly above $5300 based on a Harvard joint Center for Housing Study.
This economic activity also produces a “multiplier” effect which is additional income recirculated in other sections of the economy as a result of a home sale. The initial income stated above generates other rounds of purchases which generate income for others, and on and on…. NAR macroeconomic modeling suggests that the multiplier effect is between 1.34 and 1.62 in the first 1-2 years after a home purchase.
New homes typically sell at a ratio of 1 sale per 8 existing home sales. So, 1/8 of the average new home price is used to approximate the value added to the economy. When a new home is constructed the entire price is added to gross domestic product, GDP, because of new production.
Median price of an existing house in Tulsa is $140,000*
$12,600 (real estate related) + $5,331 (furniture/remodelng) + $7,893 (multiplier) + $20,465 (new housing) = $46,289 (total)
*Note: The estimated economic impact nationally is $63,101 based on the 2008 median sales price of $198,100 for existing homes and $230,600 for new homes. For the Tulsa area, $140,000 and $163,000 were used respectively.
