Building Jobs Mean Boom Has Legs
There is a shining with the prospect of a continued buoyant year ahead for local real estate markets. It is all because of the direct connection between real estate and the job creation spawned by increased construction.
Obviously, a boom in real estate markets this last year has had an impact across the economy and it looks like to will continue.
Typically, as the year comes to a conclusion and people turn their thoughts to Christmas shopping and family gatherings, the real estate market tends to slow down. But this year’s market statistics continue to show strength right down to the holiday season.
More than 7,700 homes worth mare than $2.6 billion were sold in the province on the Multiple Listings Service (MLS) in November. That represents a 34 per cent increase in dollar volume and a 15.1 per cent spike in the number of units sold compared to the same month last year.
This past year has been a record-setting year for real estate in B.C. Total dollar volume of sales year to date province wide until the end of November topped a previous record at $33.2 million. Close to 4,200 more homes were sold this year to date than last year.
It is estimated that for every home sold, an additional $27,873 is spent on things like taxes, legal fees, moving expenses, new furniture and appliances.
In fact, it seems as though real estate and construction are the main drivers behind an economic revival the likes of which we haven’t seen for a decade or more.
All of this real estate activity creates the demand for construction and construction leads to job creation, which in the circle of things, creates more economic activity.
The unemployment rate in our province in November dropped to its lowest level since 1976, the first year in which statistics were available.
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