The prices of real estate often depend on the value of the surrounding homes and communities. A four million dollar home in Kentucky can easily be a 40 million dollar home in other parts of the country. The same home with the same quality of workmanship can be worth a great deal more if the property is associated with a meaningful event or series of events. This can also be true of the converse. Homes near catastrophic train accidents where chemicals are spilled don’t see the same price stability as homes that have not had such a disaster in their back yards.
The recent PGA championship played at Valhalla in Louisville, Kentucky will absolutely bring more attention to the state and to Louisville. There is nothing like being on television four straight days, in the best setting possible to increase the perception of the community and therefore the interest in the community and prices will likely follow.
To be seen on television by tens of millions of people brings a cache to a place. Cache is not a word normally associated with Kentucky or Wisconsin but with both states their golf courses have seen a great deal of television time. This notoriety is helpful to all aspects of real estate in the area.
Homes that have a direct association with community are the most benefited but homes outside the normal reach are also benefited by default. When home prices rise they tend to do so as a larger geographic area rather than isolated to one community. When community A increases in value it also benefits community B and this trending upwards continues to spread albeit to a lesser degree as the geographic area expands.
This can be seen by communities or towns taking the name or a derivation of the name of the most expensive community nearest. This can be seen by what seems like a continual expansion of well healed areas such as Palm Beach and Beverly hills as the streets just outside of the actually community adopt the name of the highest price community adjacent.
Now that the PGA Championship and Louisville are no longer on television daily the event that took place there will still be written about by sports journalist and spoken of every day by broadcasters and this is perhaps the best possible way to keep the state of Kentucky and the city of Louisville in the public’s mind. Value by association is not new but most of us don’t think about it in the same way as developers and real estate professionals.
People who saw the event are likely to be wealthy and the wealthy often buy second homes. And now Louisville Kentucky is a potential area that may not have been considered previously.