House For Sale in The Winter

Do Record Cold Temperatures Affect Home Sales?

Has 2015 been cold enough for you?

Most winters have a few days where the temperatures slip to the double-digits-below freezing. But this year they have been that way for a record-setting pace throughout February.

If there is any plus side to this year’s chill, it is that it helps us forget last February.

In early 2014, Markham and the GTA were still recovering from the ice storm when February hit us with what were then record cold temperatures.

So how did last February’s cold snap affect home sales?

The data below is from a comparison of existing home sales in Markham for February, 2013 versus February, 2014.

• +12% increase in average selling price: $600,356 to $671,708
• 2 point increase in listing price vs. selling price: 98% to 100%
• 4% increase in number of homes sold: 271 to 281

In other words, during last February’s deep freeze, average home prices saw a double-digit increase, more homes were sold and sellers got a higher percentage of their listing price.

And it’s not like Markham was an exception. Average sale prices for existing homes in Toronto jumped 8.6% in the same time period. Similar increases were reported across the GTA.

While many factors affect home prices, it’s seems safe to say that colder temperatures don’t chill a hot real estate market.

Sources:
http://www.torontorealestateboard.com/
http://business.financialpost.com/2014/03/05/toronto-home-prices-february-2014/