When analyzing a market, our first goal is to accurately determine the ‘seasonality’ of a market. In most markets, this seasonality curve changes slowly from day to day, and has traditionally been pretty stable from year-to-year.
Let us examine a chart that shows the average prices in San Francisco by day of year. In this chart, the dots represent the average price by day of the year. The line shows the output of our custom-designed low-pass filter
that extracts the seasonality curve.
Via this method, it is clear that the high season in San Francisco is from July through October, while the rest of the year is relatively flat, in terms of seasonal demand.