Housing Winners = Super Bowl Champs
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 05, 2016
Realtor.com® predicts a Denver Broncos win over the Carolina Panthers in Super Bowl 50 this weekend. That could prove to be good news for the national housing market as well, the real estate site says.
“Although there is no economically driven correlation between the outcome of the Super Bowl and the housing market, we have found a promising real estate predictor for the Super Bowl that’s more effective than a coin toss,” says Jonathan Smoke, realtor.com®’s chief economist.
Realtor.com® used January’s performance of the Dow Jones Industrial Average to predict the Super Bowl’soutcome. “Out of the 49 games to date, this predictor has anticipated the outcome of the Super Bowl 82 percent of the time,” realtor.com® states.
This year, the stock market ended January down 5.5 percent, which realtor.com® says indicates a win for the Denver Broncos. If the market had risen in January, the Carolina Panthers would be the anticipated winners.
History suggests a Denver win is also good for the overall housing market, says realtor.com®.
“Denver’s past wins in the Super Bowl – in 1998 and 1999 – were also strong years for housing,” according to realtor.com®. In 1998, home prices rose 6 percent and existing-home sales increased 13 percent, according to data from the National Association of REALTORS®. Also, housing starts surged 9 percent, with single-family starts alone up 12 percent. In 1999, the housing market also showed rises, with home prices up 7 percent; existing-home sales increasing 3 percent; and housing starts inching up 2 percent.
Source: Move Inc.