| Average home sale generates $6,525 in furniture and appliance purchases |
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| Written by HGO Staff | |
OTTAWA - The average existing home purchaser will spend $6,525 on furniture and appliances within three years of taking possession, according to a study prepared for the Canadian Real Estate Association by the consulting firm Altus Clayton.
The amount spent various by region, with home purchases spending an average of $4,750 in Atlantic Canada; $5,775 in Quebec; $6,325 in Ontario; $7,175 in the Prairies; and, $7,325 in British Columbia. This is just part of the average $46,400 in additional consumer spending generated by each home sale brokered through CREA's Multiple Listing Service (MLS) during the period from 2006 to 2008. In addition to furniture and appliances, these home owners also spent money on moving costs, renovations, services and taxes. This is an increase from the average transaction impact of $32,300 in additional consumer spending during the period from 2004 to 2006. In the 2002 to 2004 period, it was $24,697. According to the report, the re-sale housing industry in Canada generated more than 202,000 and an average of $22.3 billion annually in various economic spinoffs during the 2006 to 2008 period. The economic impact of each MLS sale varied by province or region, from a high of $60,200 in British Columbia to $28,925 in Atlantic Canada, the report noted, adding the spending relates to the cost of moving from one home to another and for renovations after moving in but does not include any renovation expenditures by sellers to prepare properties for sale. "Real estate continues to be one of the major engines driving Canada's economy," CREA president Dale Ripplinger said in a release. "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." "Purchases and sales of homes trigger additional expenditures that have broad economic impacts," CREA chief economist Gregory Klump added. "Job creation is also a major factor of the sale of a home. The study shows an average of 202,750 jobs were created in Canada each year covered by the study as a direct result of resale housing transactions." The economic impact of the market for existing homes is also reflected in the sales processed by MLS systems in Canada. CREA's 2008 national MLS report says there were 462,734 residential properties sold through the service last year. The complete updated Clayton Research report is available in PDF format at www.crea.ca or by sending an email to .
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