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A winter made for selling houses

The last two winters were not kind to the residential real estate market. Combined with the normal holiday slowdown and run-up to Super Bowl Sunday, days of subfreezing temperatures, snow, ice, and storm-generated power outages took a huge bite out of the bottom lines of area Realtors and home builders.

Work has progressed at a faster pace because of good weather. The site is along Haddon Avenue.
Work has progressed at a faster pace because of good weather. The site is along Haddon Avenue.Read moreDAVID MAIALETTI / Staff Photographer

The last two winters were not kind to the residential real estate market.

Combined with the normal holiday slowdown and run-up to Super Bowl Sunday, days of subfreezing temperatures, snow, ice, and storm-generated power outages took a huge bite out of the bottom lines of area Realtors and home builders.

Up until late January, however, this winter was far better-suited to both constructing houses and selling them, agents and builders are saying.

"Bad weather adversely affects sales, and we have had a very good November, December, and, up until the 23rd, January," said Main Line Realtor John Duffy.

Said Bruce Paparone, president of the South Jersey-based home-building company that bears his name: "We were blessed with a great weather pattern that allowed us to get as many foundations in the ground that we could and also finish up a number of exteriors for our homes going to closing. The benefit is lower costs and quicker pace."

Two years ago, the unusually harsh winter required Paparone's crew to constantly shovel snow from building sites and work indoors.

This year, just a half-inch of snow had fallen before Jan. 22.

Carol McCann, an agent with Re/Max Millennium, in Fox Chase, said she's been busy in a three-month period since Thanksgiving that is more typically dominated by the few-and-far-between "serious buyer."

"I find that snowy conditions definitely slow down any buyers that aren't aggressively looking to buy, which hasn't been the case this year," McCann said.

On the other hand, Nancy Pearl of Berkshire Hathaway Home Services Fox & Roach Realtors, in Cherry Hill, said, "It seems as if there has been less activity, not more," this winter.

"I think there is a little less buyer confidence, but some sellers hear that there is less inventory, so they think they should list higher than they should," Pearl said.

Ruth Feldman, of Weichert Realtors McCarthy Associates, in Northwest Philadelphia, reported in late January 2014 that the harsh winter had reduced sales and increased the number of days on market, but that prices rose because "inventory remained low and eager buyers were willing to pay more rather than wait for more choices."

So far, Feldman said, this year's "winter market seems better than the last two winters." She added that she and her office "have been very busy, even over the holidays."

Perhaps, she said, this winter's market reflects a combination of the mild weather through mid-January and the Federal Reserve's decision to raise short-term interest rates, which, while not affecting fixed-interest mortgage rates, "got buyers off the fence."

Another factor: The Eagles' season finishing on Jan. 3 freed up the open house schedule, which is often planned around important games, Feldman said.

Martin Millner, an agent with Coldwell Banker Hearthside Real Estate, in Yardley, said the winter of 2013 was unusual because there were few houses on the market and a lot more buyers than expected.

Since Dec. 1, Robert Acuff, broker/owner of Re/Max Services in Blue Bell, said, "we had an unseasonably warm winter, so potential buyers are out looking."

"We have also seen [the warm weather's effects] in showings and strong open house activity," he said. "Our mortgage person has seen noticeably increased mortgage applications over the last year for first-time home buyers, indicating a healthy spring market as buyers are getting ready to purchase."

A major factor in any real estate market is consumer confidence, which Acuff said was coming from a somewhat unexpected source.

"Someone commented to me that with dramatically lower gas prices, people have more money in their pockets and are feeling better," he said.

Cheaper gas increases the willingness of prospective buyers to drive farther and longer to look at houses for sale, even though they might have whittled the list down on the Internet.

aheavens@phillynews.com

215-854-2472@alheavens