Survey shows weather patterns can impact some real estate sales


Certainly extreme weather, such as heavy flooding can impact a real estate location, but even unexpected cold weather or heat waves can apparently also hurt sales on a shorter term basis.

A survey of 1,434 agents revealed 41% said they noticed the unusual weather patterns in Canada over the past five years have affected housing market activity.  For example, when there’s a heat wave or an unusually long winter, fewer sellers might want to list their properties and buyers might also prefer to stay at home. The report did not list any instances when unexpected good weather might conversely boost sales.

“With all the different factors that affect the housing market, weather can often be overlooked,” said Phil Soper, chief executive officer of Royal LePage. “Severe weather, be it extreme heat, wet or cold, can prolong or delay seasonal sales cycles by weeks or even months.”

Soper explained that when sales are down due to weather, that slip in demand can briefly impact home values. But over the long term, there is no evidence that the weather can change home prices.

“People love to talk about the weather and the real estate market. While it is interesting that the former can impact the later, variables such as interest rates and employment levels are more important in determining the trajectory of our housing industry,” said Soper.

Royal LePage listed the following chart relating to how to prepare a listing during hot and cold weather:

Considerations when listing a home:

1
(most important)

2

3

(least important)

SUMMER

Requirement for air conditioning when showing a home

Lack of potential buyers due to vacations or ‘escaping the city’

Drought conditions affecting lawn or landscaping

WINTER

Keeping a home sufficiently heated and comfortable for open houses

Accessibility of roads/parking due to snow

Difficulty accessing exterior of home/yard for showings or inspections

The Royal LePage Advisor Survey was conducted online between August 9-12, 2011.

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