Maybe sellers should start keeping a closer eye on the Dow when deciding asking prices.
As stock prices of local companies increase, so do the sale prices of homes nearby, says online real estate portal and brokerage Redfin in a new report.
The median sale price of homes rises by a not so shabby $4,400 for every $1 billion in stock value added by local companies, according to Redfin. In fact, a 1 percent increase in the stock values of Greater Boston companies could the send the median price soaring by a very meaningful $25,000, Redfin notes.
Here's an excerpt from Redfin's blog post on the survey.
Certainly, we are not suggesting that home buyers should make decisions about buying or selling based on how they believe nearby companies will perform on Wall Street. Nevertheless, in Las Vegas and Silicon Valley, homeowners live and die by the success or failure of their corporate neighbors.
In Silicon Valley, where the stock value of local companies tops a trillion dollars, that same 1 percent increase in value nets home sellers in Mountain View and other hotspots a whopping $48,000 extra.
This "stock market influence correlation" is the 10th highest in Greater Boston of the 19 major metro markets surveyed by Redfin.
I am not sure I am completely buying this. Also, there are some oddities in the survey - we are ahead of San Francisco and Seattle but behind Miami and Raleigh
For its part, Las Vegas tops the charts with the strongest stock market correlation of any city in the country.
Given Vegas is a company town, with employees working at publicly traded casino companies, this actually makes sense to me.
There is probably a gambling/casino tie in as well - if you are feeling particularly clever this morning, have a go at it.
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