A new study shows the real estate market remains a prime driver of Canada’s economic engine.
The resale housing industry in Manitoba generated 5,780 direct and indirect jobs in Manitoba and an average of $498 million in various economic spin-offs in the period from 2006 to 2008, according to the new study prepared for the Canadian Real Estate Association by Altus Clayton.
The study reported the resale housing industry in Canada generated more than 202,000 jobs and an average of $22.3 billion annually in various economic spin-offs in the period from 2006 to 2008.
“Real estate continues to be one of the major engines driving Canada’s economy,” said CREA president Dale Ripplinger. “This study shows the tremendous contributions Canada’s resale housing industry makes to the economy.
“When Canadians move, they typically buy new appliances or furnishings, and renovate in various ways to tailor their home to their specific requirements,” he added.
The report said each residential MLS® transaction in Canada generated an average of $46,400 in additional consumer spending during the same period, which included the purchase of furniture and appliances, moving costs, renovations, services, and taxes.
By comparison, from 2004 to 2006 the average transaction yielded $32,200 in additional consumer spending. In the period from 2002 to 2004, it was $24,697.
The new study said the economic impact of each MLS® sale varies by province or region, from a high of $60,200 in British Columbia to $28,925 in Atlantic Canada. The report noted the spending relates to the cost of moving from one home to another and for renovations after moving — it does not include any renovation expenditures by sellers to prepare properties for sale.
“Purchases and sales of homes trigger additional expenditures that have broad economic impacts,” said CREA Chief Economist Gregory Klump.
“Job creation is also a major factor of the sale of a home. The study shows that an average of 202, 750 jobs were created in Canada in each year covered by the study as a direct result of resale housing transactions.”
The study showed that one-in-85 full-time equivalent jobs were generated directly and indirectly through the purchase and sale of MLS® homes.
The economic impact of the market for existing homes is also reflected in the sales processed by MLS® systems in Canada. The 2008 national MLS® report from the CREA said there were 462,734 residential properties sold through the Multiple Listing Service® last year. Of this total, over 12,000 residential properties were sold in the Winnipeg Census Metropolitan Area.