AI and Zelman and Associates Teleconference

[brett spaulding]

Just finished the teleconference about the appraisers survey and statistical data provided by Zelman and Associates (http://www.zelmanassociates.com/)
Very interesting in both residential and non-residential. Some points I found interesting for the residential market.
1. Most home sales 150K and under are being purchased by investors for cash. Of these investors, 61% are using cash instead of financing.
2. The average days are increasing for deliquency, essentially, those homeowners who are simply not paying the mortgage or are in court proceedings.
3. Banks continue to tighten lending standards with no more than 45% potential buyer debt and higher downpayments.
4. Finally, on a national level, single family housing is split between those market participants who believe the bottom is here and those who predict a slight continued decline in 2010.

Locally, it has been my experience that the residential market has stabilized with only some decreases still evident in investor dominated markets. Still I think, based on the survey, unemployment, lack of funds and the work I have been doing, prices will remain depressed through 2010. Any thoughts, feedback or corrections are welcome from my peers in the Volunteer State.
PS If you would like a copy of the slide presentation just e-mail and I will send it back to you.

 

[RSW]

I've not done many appraisals in the last few months. But, the ones I've done shows the market is starting to level off with a slight increase in some areas. This may be a seasonal change in the market. It will be interesting to see what happens with the winter months data.