What does baseball have to do with the housing market? We set out to find the answer.
Colorado Rockies Performance Stats & Team Value
First, we looked at the performance of the Colorado Rockies so far in the 2018 season. As of today (April 26, 2018), the Rockies have won 53.8% of the games they’ve played (14 wins – 12 losses). The team has been steadily trending upwards over the last five years, starting at 40% wins in 2014 and climbing to 53.7% wins last year. See the latest year-by-year results for the Colorado Rockies.
Next, we looked at the value of the team itself:
The Colorado Rockies are valued at $1.1 billion in Forbes’ latest ranking of Major League Baseball teams, a 10 percent increase over last year.
Forbes provides a breakdown of multiple financial aspects of the team, including revenue ($266 million), operating income ($15 million), gate receipts ($73 million), revenue per fan ($58), debt/value (8 percent), and player expenses ($148 million).
The value of the Colorado Rockies has been on the rise for the past 5 years as well. In fact, the team’s value has nearly doubled from $575 million in 2014 to $1.1 billion in 2018. See more about the value of the Colorado Rockies.
Metro Denver Home Value
Now, let’s turn to the housing market. The REcolorado Market Watch for March 2018 showed the average sold price for a single-family home rose to $469,613, an 11% increase year-over-year. Average sold prices have been increasing over the past 5 years, with an average of $312,113 in March 2014.
For more statistics and the latest information, check out the REcolorado Market News & Stats.
Baseball & the Housing Market
To answer our question, we plotted these trends on the same graph.
When you look at the Rockies team value and average home values over the last 5 years, both have been climbing. While the Rockies team value plateaued between 2015 and 2016, the housing market remained at a fairly consistent slope. The year-over-year increases from the past two years have been remarkably similar.
What about team performance? We plotted that too.
Since this season is still underway, we’ll look only at 2014 to 2017.
If you adjust the axes, hold your phone out or step away from the computer, tilt your head, and squint a little, the pattern is undeniable. As Rockies percent wins increases, so does home value!
What does this mean for homeowners in Colorado?
ROOT ROOT ROOT FOR THE ROCKIES!