Definition of Increasing Market

[Edging]

Greetings.

What is your definition of an increasing market? That is, when do you mark increasing market on the 1004 form? Also, what is your process to determine, i.e. do you use zip code, similar sales, or some other segmentation?

Thanks in advance for your time.

 

[ramrcdk]

I have been "box-check(ing) as Increasing" "in those markets" for several months where the report would have
the Neighborhood Boundaries where I would shop for comps!
An indicator would be limited inventory, DOM zero or very low dom, rising prices, & where the 1004MC has adequate input for use of resulting output over the past year.
Certainly there are several statistics & analysis sources but an easy one is MLS.

 

[Fernando]

When your 1004MC shows an increasing price trend, then most likely it's increasing.
If shows inconsistency of increase, then investigate further.

 

[Dublin ohio]

When your 1004MC shows an increasing price trend, then most likely it's increasing.
If shows inconsistency of increase, then investigate further.

I cannot remember the last time I had enough comparable data to populate the 1004mc with enough data to be meaningful.

 

[Edging]

What is the threshold of increase? Is it 1%, 2% 10% or any other %? If the comps from the most recent 6 months show a median increase of 1% over the prior 6 months of comparables, is this increasing? Or would it be some other %?

 

[J Grant]

What is the threshold of increase? Is it 1%, 2% 10% or any other %? If the comps from the most recent 6 months show a median increase of 1% over the prior 6 months of comparables, is this increasing? Or would it be some other %?

Imo, 1% is too meaningless to be an increase. I need to see at least 3% or greater sustained over 4-5 months in either increase or decline to matter...though I might note it in comments, I am not going to make a market condition/time adjustment for such a meager market movement

I put a lot of stock in the most recent development as well, what are todays listings doing? Are they going to contract fast, or are they on the market longer than X days, are they selling above, below, or at the listing prices etc.

Also different segments of the market can appreciate at different rates. You can comment that the general market is appreciation at X % but the subject market segment shows y % ( and reason)

 

[ramrcdk]

I cannot remember the last time I had enough comparable data to populate the 1004mc with enough data to be meaningful.

Dublin, see that is interesting to me. So your coverage area is rural in nature OR is your real estate market demographically slow?

Last I heard "around here" we continue to have low inventory, @1 month of inventory +- median price & metro-area wide. Shortly and obviously, this will mean
limited sales & further limited in those of subject comparison. Where Active Listing uses are requested = SOL.
I wonder if the impact & also given the amount of lender "waivers" will result in a slow down of appraisal assignments specific to the USA city- market area.

 

[Dublin ohio]

Dublin, see that is interesting to me. So your coverage area is rural in nature OR is your real estate market demographically slow?

Last I heard "around here" we continue to have low inventory, @1 month of inventory +- median price & metro-area wide. Shortly and obviously, this will mean
limited sales & further limited in those of subject comparison. Where Active Listing uses are requested = SOL.
I wonder if the impact & also given the amount of lender "waivers" will result in a slow down of appraisal assignments specific to the USA city- market area.

Market is not "slow" around here. Inventory has been low for months. Prices increasing to the point of stupidity. DOM rarely reaches 10 days. Truly comparable sales are limited in any neighborhood. I am lucky to have 10 similar sales in a year. Just got a purchase assignment this morning. Suburban PUD 10 minutes from me. Preliminary research revealed about 6 sale that could be considered comparable. Not hardly enough to make 1004MC relevant