Add the stock market to the multitude of factors that could influence home prices. On average, for every $1 billion jump in stock value of public companies in a given area, the median sale price of nearby homes rises by $4,400 about three months later, according to a study from real estate brokerage Redfin.
The study considered 824 public companies across 19 metro areas and found home price changes were most strongly correlated with local companies’ valuation changes in Las Vegas, Silicon Valley and New York, respectively.
In Silicon Valley, where 45 publicly traded companies were considered in the study, an increase of just 1 percent in aggregate stock value for these companies (currently worth about $1.1 trillion) could lead to a more than $48,000 jump in the area’s median home price, Redfin said.
Source: Redfin
