Seasonal Selling
08/21/2014 | | Economic forecasting, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Graphsandlaughs, MLS, Multiple listing service, Public speaking economist, Seasonal adjustment factors, econ70, economist on TV, economist on radio, eisenberg and economics, funniest economist, funny housing economist, graphsandlaughs and eisenberg, housing sales, mortgage banking, politics and economics, seasonal adjustment, www.econ70.com
Housing 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.