Three major things. Number one, as we start seeing prices start to dip this is nothing to be concerned about. It’s not a sign of impending doom. It’s just a seasonality we have experienced over the last couple of years. We have to let our sellers know if they are waiting until the end of the this year to get more money that is probably not going to happen. If anything they might get less money because there will be more distressed properties out there. Distressed properties effect what our buyers are going to buy and also effects the appraisals. Let’s not forget what we have lived through over the last couple of years.
Secondly, there is a clear seasonal pattern. In recent years the seasonal pattern has been exaggerated by a large number of foreclosures. But foreclosures tend to be fairly steady all year. Our conventional sales are stronger in the spring and early summer and weaker in the fall and winter. All that means is that our business is front loaded meaning we sell more houses in the first six months of the year than we do in the second six months. But distressed properties sell evenly throughout the year as long as the inventory is there. So at the beginning part of the year as regular sales might fall off some of the percentage of distressed properties rise. And the last thing, this leads to more downward pressure from foreclosures in the fall and winter.
Thanks KCM Crew
Michele Herndon
micheleherndon@me.com
http://www.tampaandbeyond.com
http://www.apollobeachluxuryhomes.com
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