• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Declining Market conditions Difinition

Status
Not open for further replies.

Jim Hill

Thread Starter
Member
Joined
Oct 13, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I was wondering how other are determining if there market is declining other then just the sit of your pants feel.



Jim Hill
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Jim,

When more recent sales are at a lower price than older sales for similar properties, the market is declining. Ditto listings.

There may be other indicators that the market is getting ready to decline like longer days on market. You can't get out of doing the tedious work to analyse the market trends. If you've never done it, it becomes much more important when the market is changing and you'll need to step up.
 

Brockway

Junior Member
Joined
Mar 8, 2004
Professional Status
Certified Residential Appraiser
State
New York
Jim, I was going to email you a pdf document from one of my clients which explains exactly how they want me to prove market conditions in my reports but your PM is turned off. Depending on your data sources, this can take several hours but once you have done the initial work it is easy to update.
 

Kevin Keck

Junior Member
Joined
Jun 2, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
I track average sales prices per period, average sale to list price ratios, days on market, and inventory. Try some searches on this Forum for related threads. There has been plenty of discussion.
 

Jim Hill

Thread Starter
Member
Joined
Oct 13, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Patsy

Patsy:

I just changed the setting on the PM and yes I would like to read what the lender send you.

I am trying to figure out what others are using to determine a declining market.

We all know about day's on market and past sales but the time period for each appraiser seems a little different to arrive at the same conclusions.

Thanks Jim Hill
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I was wondering how other are determining if there market is declining other then just the sit of your pants feel.
Jim Hill

What is your definition of "market is declining"?
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Seat of my pants.

Seriously, I use days on market, pricing history, and current listings of similar homes in the same neighborhood. If you have not been following similar threads on the forum, you should note that market trends can change from neighborhood to neighborhood. Most communities have sub-markets. In my area, most very high end neighborhoods have not been seriously affected.

Some lenders have created lists of counties and/or cities where they will NOT accept a report that shows the market as stable without substantial documentation to prove it.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks