Seasonal Selling

seasonaladjustmentHousing sales peak in spring/summer, with price gains doing so as well. However, distressed sales, of which there have been many, occur relatively evenly all year. Therefore, distressed sales are highest as a percentage of all sales in fall/winter, thereby dragging down house prices and amplifying normal seasonal patterns. Distressed sales are now declining, but seasonal adjustment factors take years to adjust. Be very leery of seasonally adjusted house prices.

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