As part of the company's ongoing initiative to stimulate the economy through a tax credit for home buyers, Weichert Realtors founder Jim Weichert recently submitted an op-ed piece to the media across the country.
Lawmakers in Washington should act to speed a genuine economic recovery through a federal tax credit or other incentive for home buyers. Housing is the single largest segment of the U.S. economy. What's more, each home sale triggers a demand for goods and services through all segments of the economy.
Based on the income of service providers alone, Lawrence Yun, chief economist of the National Association of Realtors, calculates that the sale of a $417,000 home generates $37,000 in direct economic activity, which is staggering when multiplied by the billions of dollars generated in home sales each year.
A report by the National Association of Home Builders revealed the magnitude of post-moving spending. In the first 12 months of ownership the typical buyer of an existing home spends $6,540 on home-related items, while new-home buyers average $8,642. The same report also finds that building an average single-family home generates 3.47 jobs and $82,269 in tax and other government revenue.
A home buyer's tax credit would provide an added incentive for the consumer to jump on the many exceptional buying opportunities out there today. With more direct action by the president and Congress, the housing industry can and will lead the way to both short and long term economic recovery.
Weichert local franchised offices are Regional Properties in Orange and Hamden, Shoreline Properties in Branford and Quinnipiac Properties in Wallingford.