- Joined
- Jan 16, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Arkansas
You know as soon as you indicate a declining market on your report, it's over. I would assume no one throws the "D" word around loosely.
At what point would YOU say a market is declining? Of course, when property values are going down but when would you start measuring the decline?
Does this question make any sense?
I see signs in our market that would indicate that a decline is on the way. A mass exodus from our town, property appraising for more than the sales price when using comps 6-12 months old, appraisals coming in less than they did the last time you appraised the home (though it still is not below the sales price a few years back), huge increase in stagnant listings, etc.
I know none of these "signs" is hard documentation of a declining market but even if you were to try to measure the direction of a market (stable is so much easier, right?) you're obviously observing trends from a point in the past to the present. But what point in the past would you use? I know someone is going to say from the point at which they started declining...
How much evidence would it take for you to determine that a market is in a decline and actually note that on the report?
Ron in AR
At what point would YOU say a market is declining? Of course, when property values are going down but when would you start measuring the decline?
Does this question make any sense?
I see signs in our market that would indicate that a decline is on the way. A mass exodus from our town, property appraising for more than the sales price when using comps 6-12 months old, appraisals coming in less than they did the last time you appraised the home (though it still is not below the sales price a few years back), huge increase in stagnant listings, etc.
I know none of these "signs" is hard documentation of a declining market but even if you were to try to measure the direction of a market (stable is so much easier, right?) you're obviously observing trends from a point in the past to the present. But what point in the past would you use? I know someone is going to say from the point at which they started declining...
How much evidence would it take for you to determine that a market is in a decline and actually note that on the report?
Ron in AR