What kind of impact does a home sale have on New Hampshire’s economy?
Realtors survey puts average effect of each transaction at $156,100
The average New Hampshire home sale has an overall economic impact of $156,100, almost 38 percent higher than the U.S. average of $113,200.
That’s according to a report issued by the National Association of Realtors, which measured the effects such costs as moving expenses, insurance fees and furniture and appliance purchases contribute to each state’s economy. Overall, the Realtors said, the total economic effect of homes sales in New Hampshire in 2020 was $17.5 billion, or 17.8 percent of the gross state product.
The average overall impact in New Hampshire was second highest in New England, behind Massachusetts, Massachusetts which had the highest economic impact per home sale, $191,700.
In the report, the Realtors broke down the impact of a sale into four categories
- Income generated by real estate industry-related services, which totaled an average of $44,641. It includes commissions, fees and moving expenses, which accounted for 28.6 percent of total impact
- Expenditures related to the home sale, such as furniture and remodeling expenses, which averaged $5,000 and amounted to 3.2 percent of impact
- A “multiplier effect” by which other sectors of the economy get income passed down from a home sale. In New Hampshire, it was $23,828, or 15.3 percent of total impact.
- New home construction, stimulated by an existing home sale, makes up 52.9 percent of total impact, or $82,669. The Realtors said that one new home is constructed for every six existing home sales.