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How Weather Affects Home Buying and Selling

Mar 30 2016

Many factors affect changes in the housing market. Some may be related to the economy and the business cycle. A lot are based on the psyche of the actual buyers. How comfortable are potential buyers in their jobs? How confident are they with a down payment and monthly payments?

Other factors may be more personal: Are they motivated to move, aside from the strength of the economy?

The National Bureau of Economic Research, in a paper from 2012, suggests that warm weather may have a positive impact on home sales (specifically, the signing of a sales contract).

The writers argue that if the weather is warm (as it is during the summer home buying season), and the home has benefits like access to a swimming pool or air conditioning, buyers can see themselves enjoying the home on a nice day.

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