10-17-2013 02:43 PM

Baltimore's public companies might be an indicator of housing prices


Redfin tied an area's housing valuations to prices of stocks located within that area.




If a local area's public companies are doing well, then home prices in that area should be higher than in an area where companies aren't doing so well.
That's the logic behind Seattle online real estate company Redfin's latest analysis, which examined the correlation between home prices in a given area, and the stock valuations of publicly traded companies nearby.
Redfin said it incorporated home prices and aggregate stock valuations of 824 public companies across 19 metro areas over the last 20 years, and ranked each area from the highest correlation to the lowest.
Out of the 19 ranked areas, Baltimore had the ninth-strongest correlation between housing prices and stock performance of area public companies.
Las Vegas ranked No. 1 in the Redfin survey, San Jose, Calif., ranked No. 2 and Denver was last at No. 19.
Redfin said it only used companies with market caps greater than $500 million, and said there were 16 companies that qualified in the Baltimore area.



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