World Cup ‘housing dip’ to reverse sharply
The housing market activity is set to rise sharply after the World Cup following a dip during the tournament, according to haart estate agents.
Although a dip in the number of housing transactions has been recorded during previous World Cups, this appears to have been short-lived and the housing market will bounce back, with property sales in August set to rise well above the average summer levels.
haart has analysed data on housing transactions before, during and after the tournament, stretching back 20 years from the World Cup year of 1986. That year, Mexico hosted the tournament and England reached the quarter finals.
Monthly housing transactions were 1,600 less in the June of World Cup years than others – a decrease of 1.3%. After the competition is over, however, the number soars, with an average increase of 4.1% in the August of those years than when no World Cup took place.
This pattern is also affected by how well England does. In 2002, when it reached the quarter-finals, transactions were down 5.1% in June but went up by 11.1% in August but in 1994, when England failed to qualify, levels fell by just 0.9% in June and rose by only 2.8% in August.
However, there are other factors that affect the impact the World Cup has on the housing market. In 1998, for example, when the housing market was strong, the number of transactions in June rose by 3.6%, while in 1990, when the market was on a downward turn, transactions fell by 5.7% and were still falling in August – by 5.9%.
Russell Jervis, managing director of haart, said: "It is well documented that the World Cup will impact on the economy as football fever grips the nation. Our research clearly shows that the housing market is no different, as the fixtures of the World Cup monopolise people’s time, and the important decisions that need to be thought through are put aside until it’s all over."
"However, as our research reveals the housing market is set to be very buoyant in the aftermath of the competition, as homeowners and buyers quickly resume their lives."
"With this in mind, potential buyers and sellers should consider entering the market now and being a step ahead of the post tournament rush, as it could be an excellent time to snap up a great deal amidst the football fever."
The housing market activity is set to rise sharply after the World Cup following a dip during the tournament, according to haart estate agents.
Although a dip in the number of housing transactions has been recorded during previous World Cups, this appears to have been short-lived and the housing market will bounce back, with property sales in August set to rise well above the average summer levels.
haart has analysed data on housing transactions before, during and after the tournament, stretching back 20 years from the World Cup year of 1986. That year, Mexico hosted the tournament and England reached the quarter finals.
Monthly housing transactions were 1,600 less in the June of World Cup years than others – a decrease of 1.3%. After the competition is over, however, the number soars, with an average increase of 4.1% in the August of those years than when no World Cup took place.
This pattern is also affected by how well England does. In 2002, when it reached the quarter-finals, transactions were down 5.1% in June but went up by 11.1% in August but in 1994, when England failed to qualify, levels fell by just 0.9% in June and rose by only 2.8% in August.
However, there are other factors that affect the impact the World Cup has on the housing market. In 1998, for example, when the housing market was strong, the number of transactions in June rose by 3.6%, while in 1990, when the market was on a downward turn, transactions fell by 5.7% and were still falling in August – by 5.9%.
Russell Jervis, managing director of haart, said: "It is well documented that the World Cup will impact on the economy as football fever grips the nation. Our research clearly shows that the housing market is no different, as the fixtures of the World Cup monopolise people’s time, and the important decisions that need to be thought through are put aside until it’s all over."
"However, as our research reveals the housing market is set to be very buoyant in the aftermath of the competition, as homeowners and buyers quickly resume their lives."
"With this in mind, potential buyers and sellers should consider entering the market now and being a step ahead of the post tournament rush, as it could be an excellent time to snap up a great deal amidst the football fever."
posted by tony at 4:57 PM
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