Fannie Mae Annoumcement
If this is for conventional financing, I suggest you read Fannie Mae's comments on the subject.
http://www.allregs.com/efnma/index....w=0&tv=0&tq=0&tx=/&tp=FNMA/annoc/n2007/n07-22
But, in any market I suggest you give reliable and actual condition information. In my market we are still seeing an annual increase in value by 3-6% annually. I choose, since I do residential work only, to use the data specific to the subject neighborhood or market.
I just completed an appraisal on a 1,000+- sq ft condo. It is in a condo with 2 additional almost identical condos on either side that are only different in the amenities offered and the monthly condo fees.
This is the data for the subjects market:
• 1073 : Neighborhood - Market Conditions
THERE IS 1 ACTIVE MLS LISTING IN SUBJECT AREA AT $135,000. THERE ARE 28 CLOSED MLS SALES AT AN AVERAGE OF $145,061. =107% LIST TO SALES PRICE RATIO. THERE IS 1 PENDING SALE AT $142,500. THERE ARE 12 EXPIRED MLS LISTINGS AT AN AVERAGE OF $145,833. AVERAGE DAYS ON MARKET FOR CLOSED SALES IS 56 DAYS. VA/FHA AND CONVENTIONAL FINANCING ARE AVAILABLE AS WELL AS OTHER FORMS OF FINANCING.
Now, clearly this market is not declining. In fact, values are increasing, and there is a shortage of available properties. This is the type of analysis I believe we owe our clients.
Just for the record, in some neighborhoods and markets locally, I can show just the opposite. Such data is market specific, not for an entire county, city or state.