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What Is the Strongest Tailwind to Today’s Recovering Economy?

What Is the Strongest Tailwind to Today’s Recovering Economy? | Simplifying The Market

Last year started off with a bang. Unemployment was under 4%, forecasters were giddy with their projections for the economy, and the residential housing market had the strongest January and February activity in over a decade.

Then came the announcement on March 11, 2020, from the World Health Organization declaring COVID-19 a worldwide pandemic. Two days later, the White House declared it a national emergency. Businesses and schools were forced to close, shelter-in-place mandates were enacted, and the economy came to a screeching halt. As a result, unemployment in this country skyrocketed to 14.9%.

A year later, the economy is recovering, and the U.S. has regained more than half of the jobs that were originally lost. However, some businesses are still closed, and many schools are still struggling to reopen. Despite the past and current challenges, there is one industry that’s proven to be a tailwind helping to counter all of these headwinds to our economy. That industry is housing. Remarkably, the residential real estate market (including existing homes and new construction) has flourished over the last twelve months. Sales are up, prices are appreciating, and more new homes are being built. The housing market has been a pillar of strength in an otherwise slowly recovering economy.

How does the real estate market help the economy?

At the beginning of the pandemic, the National Association of Realtors (NAR) released a report that explained:

“Real estate has been, and remains, the foundation of wealth building for the middle class and a critical link in the flow of goods, services, and income for millions of Americans. Accounting for nearly 18% of the GDP, real estate is clearly a major driver of the U.S. economy.”

The report calculated the total economic impact of real estate-related industries on the economy as well as the expenditures that resulted from a single home sale. At a national level, their research revealed that a single newly constructed home had an economic impact of $88,416.

Here’s how it breaks down:What Is the Strongest Tailwind to Today’s Recovering Economy? | Simplifying The MarketThe map below shows the impact by state:What Is the Strongest Tailwind to Today’s Recovering Economy? | Simplifying The MarketThe impact of an existing home sale is approximately $40,000.

Real estate has done more for our economic wellbeing than virtually any other industry over the last year. It’s been a beacon of light during a very challenging time in our nation’s history.

Bottom Line

Whether you’re buying a newly constructed home or one that already exists, you’re making a positive economic impact in your local community – and it’s a step toward your homeownership goals as well.


Source: KMC

Posted in: For Buyers, For Sellers, New Construction Tagged: Real Estate

© Margo Borkin Real Estate 2010

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Margo Borkin Real Estate

Margo Borkin Real Estate
1 week ago
Margo Borkin Real Estate

We all have one...⁣
⁣
• The one recipe you return to again and again because it’s just so darn delicious⁣
• The one you find yourself mindlessly grabbing the ingredients for every time you stop at the store⁣
• The one you can make on auto-pilot even though you’re so exhausted you can hardly see straight ⁣
⁣
So what's your bonafide “go-to” meal! Share it in the comments below, bonus points for pics.
... See MoreSee Less

We all have one...⁣
⁣
• The one recipe you return to again and again because it’s just so darn delicious⁣
• The one you find yourself mindlessly grabbing the ingredients for every time you stop at the store⁣
• The one you can make on auto-pilot even though you’re so exhausted you can hardly see straight ⁣
⁣
So whats your bonafide “go-to” meal! Share it in the comments below, bonus points for pics.
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Margo Borkin Real Estate
1 week ago
Margo Borkin Real Estate

Think the highest offer on a home always wins? Think again. Here are four reasons why a seller may not choose the highest offer:⁣
⁣
1. A buyer brings an all-cash offer: A buyer paying cash means there won’t be any financing pitfalls — and sellers LOVE avoiding pitfalls.⁣
2. A buyer can close ASAP: If a seller is antsy to get moving, an offer from a buyer who can close quickly will zoom to the top of the stack.⁣
3. A buyer shares their story. Sometimes buyers want sellers to know exactly why their house is “the one.” And sometimes, that’s all it takes for a seller to agree — especially if a seller has lived in the home for decades and their move is a sentimental one.⁣
4. A buyer doesn’t ask for contingencies. A common contingency is that a buyer must sell his or her home before buying. Sellers love when an offer is free and clear of cumbersome contingencies totally out of their control.⁣
⁣
It’s true — you want to go in with a strong offer price-wise, but that’s not the only thing sellers are looking for. Sellers want an offer that’s competitive, clean, AND close-to-asking price — the closer you can get to all three, the better!
... See MoreSee Less

Think the highest offer on a home always wins? Think again. Here are four reasons why a seller may not choose the highest offer:⁣
⁣
1. A buyer brings an all-cash offer: A buyer paying cash means there won’t be any financing pitfalls — and sellers LOVE avoiding pitfalls.⁣
2. A buyer can close ASAP: If a seller is antsy to get moving, an offer from a buyer who can close quickly will zoom to the top of the stack.⁣
3. A buyer shares their story. Sometimes buyers want sellers to know exactly why their house is “the one.” And sometimes, that’s all it takes for a seller to agree — especially if a seller has lived in the home for decades and their move is a sentimental one.⁣
4. A buyer doesn’t ask for contingencies. A common contingency is that a buyer must sell his or her home before buying. Sellers love when an offer is free and clear of cumbersome contingencies totally out of their control.⁣
⁣
It’s true — you want to go in with a strong offer price-wise, but that’s not the only thing sellers are looking for. Sellers want an offer that’s competitive, clean, AND close-to-asking price — the closer you can get to all three, the better!
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Margo Borkin Real Estate
1 week ago
Margo Borkin Real Estate

It's time for the last secret in our 5 Secrets of a Successful Sale — secrets that together will help you sell your home without a hint of luck or wishful thinking.⁣
⁣
Before jumping to Secret #5, a quick review:⁣
⁣
Secret #1: It’s your kitchen that’ll sell your home.⁣
Secret #2: Declutter, depersonalize, and stage your home.⁣
Secret #3: Don't go overboard on upgrades.⁣
Secret #4: Find out what your home is worth, then shave 15-20% off the price to spark a bidding war.⁣
⁣
And last but certainly not least...⁣
⁣
Secret #5: Work with the right agent.⁣
⁣
The easiest way to hire the RIGHT agent? Knowing when they’re the WRONG agent. Here are few warning signs:⁣
⁣
• They have few references.⁣
• They aren’t familiar with your neighborhood.⁣
• They are new to town.⁣
• They are hard to reach by phone, email, or text.⁣
• They pressure you to make decisions before you feel ready.⁣
⁣
There are a ton of AMAZING agents out there. So don’t settle! Keep looking and asking around until you find an agent you “click” with — getting a successful sale (and maybe that pot o’ gold!) depends on it.⁣
... See MoreSee Less

Its time for the last secret in our 5 Secrets of a Successful Sale — secrets that together will help you sell your home without a hint of luck or wishful thinking.⁣
⁣
Before jumping to Secret #5, a quick review:⁣
⁣
Secret #1: It’s your kitchen that’ll sell your home.⁣
Secret #2: Declutter, depersonalize, and stage your home.⁣
Secret #3: Dont go overboard on upgrades.⁣
Secret #4: Find out what your home is worth, then shave 15-20% off the price to spark a bidding war.⁣
⁣
And last but certainly not least...⁣
⁣
Secret #5: Work with the right agent.⁣
⁣
The easiest way to hire the RIGHT agent? Knowing when they’re the WRONG agent. Here are few warning signs:⁣
⁣
• They have few references.⁣
• They aren’t familiar with your neighborhood.⁣
• They are new to town.⁣
• They are hard to reach by phone, email, or text.⁣
• They pressure you to make decisions before you feel ready.⁣
⁣
There are a ton of AMAZING agents out there. So don’t settle! Keep looking and asking around until you find an agent you “click” with — getting a successful sale (and maybe that pot o’ gold!) depends on it.⁣
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Margo Borkin Real Estate
1 week ago
Margo Borkin Real Estate

Got the kitchen looking great?⁣
Got your home decluttered, depersonalized, and staged?⁣
Chatted with a realtor about worthwhile upgrades?⁣
⁣
Fist-bump! You’re SO ready for Secret #4 in our 5 Secrets to a Successful Sale! ⁣
⁣
While this one won’t require any elbow grease, it will take a tiny leap of faith. Secret #4 is all about pricing your home to sell — fast.⁣
⁣
Secret #4: Find out what your home is worth, then shave 15-20% off the price to *hopefully* spark a bidding war.⁣
⁣
Sound scary? That’s okay — I’m here to walk you through every step. Here’s why I love this pricing strategy: ⁣
⁣
• Pricing your home just below market value instantly gets buyers’ attention and motivates them to schedule a showing ASAP.⁣
• Once buyers see your home (and LOVE it), they’re more likely to put in an offer if they feel like they’re getting a deal.⁣
• When they realize there are other offers on the table, buyers tend to get competitive and are willing to increase their bid to land the home they want.⁣
⁣
With interest rates at historic lows and a lower than normal inventory, if you're looking to sell, you'll 100% be in the driver’s seat. ⁣
⁣
Curious what your home is worth in today’s market? I’d love to run the numbers for you — just drop me a message.⁣
... See MoreSee Less

Got the kitchen looking great?⁣
Got your home decluttered, depersonalized, and staged?⁣
Chatted with a realtor about worthwhile upgrades?⁣
⁣
Fist-bump! You’re SO ready for Secret #4 in our 5 Secrets to a Successful Sale! ⁣
⁣
While this one won’t require any elbow grease, it will take a tiny leap of faith. Secret #4 is all about pricing your home to sell — fast.⁣
⁣
Secret #4: Find out what your home is worth, then shave 15-20% off the price to *hopefully* spark a bidding war.⁣
⁣
Sound scary? That’s okay — I’m here to walk you through every step. Here’s why I love this pricing strategy: ⁣
⁣
• Pricing your home just below market value instantly gets buyers’ attention and motivates them to schedule a showing ASAP.⁣
• Once buyers see your home (and LOVE it), they’re more likely to put in an offer if they feel like they’re getting a deal.⁣
• When they realize there are other offers on the table, buyers tend to get competitive and are willing to increase their bid to land the home they want.⁣
⁣
With interest rates at historic lows and a lower than normal inventory, if youre looking to sell, youll 100% be in the driver’s seat. ⁣
⁣
Curious what your home is worth in today’s market? I’d love to run the numbers for you — just drop me a message.⁣
View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate
2 weeks ago
Margo Borkin Real Estate

Checking in today to share Secret #3 in my 5 Secrets of a Successful Sale. A quick look back at the past two secrets:⁣
⁣
Secret #1: It’s your kitchen that’ll sell your home.⁣
Secret #2: Declutter, depersonalize, and stage your home. ⁣
⁣
And today…⁣
⁣
Secret #3: DON’T go overboard on upgrades.⁣
⁣
It’s a mistake I’ve seen too many times. ⁣
⁣
In an effort to get top dollar for their home, well-intentioned sellers take on major renovations without consulting a realtor first. Misinformed and assuming they’ll get every dollar back (and then some!), they go overboard on upgrades only to be disappointed at the closing table.⁣
⁣
And while there are upgrades worth doing prior to selling, they’re often quick fixes, not major renovations. ⁣
⁣
If you’re thinking about selling soon, reach out to a realtor who knows your neighborhood and can give you data on the upgrades that matter most to buyers in your area. ⁣
⁣
Not thinking about selling, but know someone who is? Pass this along and save them from the stress, headache, and expense of unnecessary upgrades.
... See MoreSee Less

Checking in today to share Secret #3 in my 5 Secrets of a Successful Sale. A quick look back at the past two secrets:⁣
⁣
Secret #1: It’s your kitchen that’ll sell your home.⁣
Secret #2: Declutter, depersonalize, and stage your home. ⁣
⁣
And today…⁣
⁣
Secret #3: DON’T go overboard on upgrades.⁣
⁣
It’s a mistake I’ve seen too many times. ⁣
⁣
In an effort to get top dollar for their home, well-intentioned sellers take on major renovations without consulting a realtor first. Misinformed and assuming they’ll get every dollar back (and then some!), they go overboard on upgrades only to be disappointed at the closing table.⁣
⁣
And while there are upgrades worth doing prior to selling, they’re often quick fixes, not major renovations. ⁣
⁣
If you’re thinking about selling soon, reach out to a realtor who knows your neighborhood and can give you data on the upgrades that matter most to buyers in your area. ⁣
⁣
Not thinking about selling, but know someone who is? Pass this along and save them from the stress, headache, and expense of unnecessary upgrades.
View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 1
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  • Comments: 0

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