Metamorphic
Senior Member
- Joined
- Mar 15, 2008
- Professional Status
- Certified Residential Appraiser
- State
- California
I've been noticing that when I do my analysis of prior sales of comparables, the appreciation rate of properties that last sold before the boom...say 94 or earlier, have been getting down into the +3-6%APR range with increasing frequency. This rate of appreciation seems to be a reasonable and sustainable rate, which suggests that prices of these properties are at or are approaching some sort of realistic/rational level of value. While I'm sure that it is possible for property prices to sink below values, it seems reasonable that there would be some level of market resistance to sub-value pricing; in the same way that a market cant sustain a bubble, neither can it sustain a well.
I'm interested in what other's think of this take on the market, or if there's any other ways of spotting market bottoms.
I'm interested in what other's think of this take on the market, or if there's any other ways of spotting market bottoms.