Stable Market

[Fernando]

I think it is beyond the appraiser's SOW or purpose to be measuring property values ( prices in raw data ) relative to inflation. I at least do not pretend to have that level of expertise. We are evaluating prices, hard stop - are they rising, declining, or stable ? Trying to tie it to an inflation rate can be misleading IMO and inadvertently lead to an incorrect result. Espeically as any review is going to stick to what the RE property prices are doing, which was the question asked.

When inflation increases and prices haven't kept up with inflation, one can argue real estate prices haven't increased.
Appraisers have latitude to rationalize their conclusions.

 

[ZZGAMAZZ]

Why would that be correct? If values increased at the same rate as inflation, then the values still increased, no?

... and if they increased more, or less, would they necessarily be increasing?

 

[DWiley]

... and if they increased more, or less, would they necessarily be increasing?

Does the form ask if values have increased (or decreased) relative to inflation?

If inflation is at 5%, and home values go up 3%, did values not go up?

 

[Fernando]

Appraiser's fee has not kept up with inflation but did increase from 30 years ago.
Would you say our fees increased?

 

[Tom D]

I made so much money long, long, ago that compared to now, it hasn't even increased to pre1990 value.

 

[ZZGAMAZZ]

Appraiser's fee has not kept up with inflation but did increase from 30 years ago.
Would you say our fees increased?

First glance IMO revealed that your perspective is straightforward, and the answer is obvious.
HOWEVER, a more meaingful question wold be "Did our revenue increase during the period?"

 

[TerryRohrer]

Appraiser's fee ... did increase from 30 years ago.
Would you say our fees increased?

How much help do you need?

 

[Mike Ault]

First glance IMO revealed that your perspective is straightforward, and the answer is obvious.
HOWEVER, a more meaingful question wold be "Did our revenue increase during the period?"

Since the form were addressing asks if property "values" have increased over the period , you should ask "did the net worth of being an appraiser increase during the period"? That means comparing revenue to expenses and determining the profitability of the enterprise. If your revenue goes up but your expenses went up even more, you would mark "decreasing".

 

[chad hampton]

I would say a 3% increase range is stable. Obviously stable doesn’t mean zero otherwise that term wouldn’t even exist. By that definition a .01% increase would be increasing. There’s some judgment call to this work that we do. A lot of judgment calls if we’re being honest.

 

[ZZGAMAZZ]

I would say a 3% increase range is stable. Obviously stable doesn’t mean zero otherwise that term wouldn’t even exist. By that definition a .01% increase would be increasing. There’s some judgment call to this work that we do. A lot of judgment calls if we’re being honest.

I often encounter increases of one-half-percent/month, or approx 6% annually, although as mentioned previously on the AF, data within the most recent two to three months usually is too recent to analyze accurately, and also including a traditional Holiday December impasse. Kinda straightforward to apply that data to the SC grid based upon competing sales if possible. HOWEVER, and presuming that results of a market analysis when sumarrized in a checkbox require an "absolute" decision, I wonder whether a change of 3% [for example] should be considered "relatively" in context with several previous years [also for example] of 6% - 10%???