Whats going on with the Persimmon share price?
The Persimmon (LSE:PSN) share price fell sharply last week following a trading update by the management team. But as a result of this sudden drop, the dividend yield of this FTSE 100 company is inching closer towards 8%. Despite what Persimmons share price would indicate, the trading update was actually quite encouraging. The number of home completions rose to 7,406 versus 4,900 in 2020 and 7,584 in 2019 over the same six-month period. While thats not quite at pre-pandemic levels, its close. And due to rising house prices, the groups total average selling price now stands at 236,200 versus 216,942 two years ago. Consequently, total revenue for the period was up, coming in at 1.84bn versus 1.75bn in 2019. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential...  To me, thats a sign of the company returning to its pre-pandemic levels of operations. And it seems the management team would agree as it expects this growth to continue throughout the remainder of 2021. But a question remains. Rising uncertainty within the housing market  While the performance is impressive, its important to remember that Persimmon benefited greatly from favourable market conditions, despite the pandemic. As a means to boost property sales while Covid-19 ravaged the UK economy, the government issued a waiver on stamp duty for homes under the value of 500,000. Naturally, the suspension of this tax significantly improved affordability for first-home buyers. However, now that the pandemic is slowly coming to an end, so is this favourable environment. As of the start of July, the stamp duty threshold was lowered to 250,000. And by October, it will return to 125,000. Combining this with the fact that the Help-To-Buy scheme is also ending in less than two years means a bit of uncertainty within the housing market. Needless to say, for a builder, thats not good news. So, I can understand why some investors are taking their profits. And as a consequence, the Persimmon share price is suffering for it. The bottom line  It seems we may be approaching the end of the current peak within the real estate market cycle. But over the long term, the FTSE 100 company has been an impressive performer. Looking back at the last 20 years, the stock is up more than 1,100%. And thats despite going through one of the worst property crises in the history of capitalism. Therefore, even though the Persimmon share price could continue to tumble over the short term, its still a business I would consider adding to my income portfolio for the long term.