Recent reports show that home prices are going up. Home values are on the rise as well.
According to Corelogic, a company that providers consumer, financial and property information, the number of underwater homeowners has dropped from 23.7% to 22.3% from the first quarter of 2012 to the second quarter.
What this change means is that fewer homes have underwater mortgages, and that home values are increasing. This can help those owning homes that they want to get out from under, and those looking to refinance but couldn't given the drop in price estimators.
Interestingly, Century 21, the real estate company, decided to take a look at the real estate market, its recovery, and how all of that correlates to a city's football team. And it seems that a winning football team just might be the prescription an area needs to see its home values improve.
Here are 5 findings from that survey.
Football Is a Real Estate Win-Win.
When Century 21 looking at teams that went from having a losing record in 2010 to a winning record in 2011, it discovered that in four of the five cities it studied, average home prices did go up along with the football team's winning record.
Football Losses Can Hit Hard.
Just as wins seems to help real estate values, losses can have a negative effect. The Indianapolis Colts have had a rough go of things recently, and so has the city's real estate market. When the Colts went from a winning record in 2010 of 10-6 to a losing record in 2011 of 2-14, home sales in Indianapolis dropped nearly 20 percent.
Super Bowl Win Draws Buyers.
You may not think about moving to Green Bay, Wisconsin, in light of the team's recent Super Bowl win, but plenty of people did. After winning Super Bowl 45 in 2011, Green Bay saw a population growth of 1.7 percent. Compare that with Pittsburgh, which lost to Green Bay, and you'll notice that Pittsburgh's population growth was only less than one percent (.6 percent).
Tebowing—the Real Estate Trend.
Could Tim Tebow's magic on the football field be rubbing off in the real estate industry? Century 21 found that after the Denver Broncos drafted Tim Tebow in 2010, Denver home values rose 1.46 percent. As you know the Broncos recently traded Tim Tebow to the New York Jets. Well guess what? Since signing him in March 2012, New York City home values have gone up nearly four percent! Coincidence? You be the judge.
Dedicated Fans Improve Home Values.
Century 21 discovered an interesting correlation between cities with dedicated football fans and home values. In eight of the nine cities that have 100 percent attendance rates at their football stadiums in 2011, average home sales prices rose that year. According to ESPN the nine NFL teams that consistently fill their stadium to 100 percent capacity in 2011 are:
- Dallas Cowboys
- Indianapolis Colts
- Philadelphia Eagles
- Chicago Bears
- Houston Texans
- Baltimore Ravens
- New Orleans Saints
- Tennessee Titans
- New England Patriots