Have you ever considered the bottom line impact of real estate transactions on our local economy? According to the National Association of Realtors’ Bureau of Economic Analysis, for every home sold in Colorado, $21,429 in income is generated from real estate related industries, including home construction, mortgage lending, title insurance, rental and leasing, home appraisal, and moving services. Expenditures on consumer items, such as indoor and outdoor furniture, appliances, paint and so on, generate an additional $5,331.

Each home sale also spurs spending at restaurants, sports games and charity events; the size of this “multiplier” effect is estimated at $12,845. Furthermore, home sales induce additional home production; typically one new home is constructed for every eight existing home sales. Therefore, for each existing home sale in the state, 1/8 of the new home’s value is added to the economy, or an estimated $29,763.

In sum, the total economic impact of a typical home sale for a median priced property ($238,100) in Colorado is $69,367. Homebuyers’ tax credits are being more than paid for by the positive economic impact of home sales.