The real estate market in Boston shows weak sales. Some listings stayed in the market for 78 days, 20 percent longer compared to last year's 65 days, reported CNBC, citing data from the Greater Boston Association of Realtors.
It may be true that winter generally slows down sales, because most people do not go out to buy during the season and sellers do not open their homes for viewing. Thus, most people blame snow for the low housing sales.
In Boston, It's Not the Snow
However, snow may not be the the case for Boston. The CNBC report shows that January closings in Boston home sales actually represent those which were bought in the months prior to winter, specifically in November and December. The sales are also 17 percent lower compared to January 2014 closings.
So what are the reasons for such weak home sales?
Tight Supply, Higher Prices
Data from the Greater Bostons Association of Realtors, as cited in the CNBC report, show that there is a tight supply in Boston's listings. As reported, listings in January is 24 percent lower than last year's data and this pushed the average home prices up by 3.4 percent.
According to CNBC, a real estate agent from Charlesgate Realty Group, P.T. Vineburgh, also confirmed this tight supply in Boston listings. In Beacon Hill alone, few listings are expected because there are only 9 condomiums here.
High Rents
There are higher rents, especially for richer neighborhoods in Boston. As reported by CNBC, the high rent is actually the reason people are holding on to their units. Property owners are actually more focused on renting out properties instead of selling them. After all, who would resort to selling their properties if renting them out means a monthy earning and a property still under one's name?
Real estate agents from Boston do not think the city will have higher sales these coming months as February listings are really affected by the snow. Many people are also waiting for March or later before they enlist their homes, because demand will rise.
The same Boston Real Estates and Home report also noted that people are already expecting some rebound due to more jobs and lower mortgage rates but the resurgence is not yet happening.
The bottom line is, snow is not to blame for the low home sales in Boston. Even warmer climate regions in America has low sales. Moreover, according to the DenverPost, even with deep snow, higher mortgage rates and higher home prices people are buying houses.
