New market analysis changes.

[Tim Hicks (Texas)]

One month's data is not a trend, two months data might show signs of a trend, three months data is an established trend. Fluctuations up and down over a six month period may mean an unstable market or just a typical market that has always functioned that way.

 

[Fernando]

Expect more comments on market conditions from appraisers.
And if wrong in future, appraisers will be to blame for their lack of hindsight.

 

[Essexfenwick]

Isn't the 1004MC just that? Most of my clients still require it.

Yep

The mc addendum usually dictates . Also use at least one recent comp or contract sale

End of story

 

[alebrewer]

What is wrong with using published data or the MLS data? SR 1-3 does not say it has to be original work, does it? You rely upon a lot of things published - cost books, rent surveys, etc.

Of all places, I would think California would have several sources for market conditions reports.

Further, REDFIN publishes a data center on line that you can search by county, or metro in most every state. It shouldn't take you more than 30 minutes to figure out how to use the charts to find your county and data. Then you can examine a lot of different trends over the past few years.

Data Center

View and download the latest housing market data from Redfin, including home prices, sales, inventory, new listings, and days on market.

www.redfin.com

View attachment 96312

I like the Redfin tools much better than the Zillow tools. Problem for me is that they just don't get granular enough. County level is about as granular as you can get.

 

[Overimprovement]

I wonder how Fannie/Freddie will deal with the rash of reports that attempt to skirt the issue simply by avoiding market condition adjustments altogther? We all know that will be the first attempt by the skippies...

Can we get a crackdown on report quality? No more reports accepted where homes have different C or Q factors, but no adjustments? Or no market condition adjustments despite clear data to the contrary?

If we do, maybe the supply of appraisers will whittle down to appropriately meet the new demand for appraisers.

 

[DWiley]

I wonder how Fannie/Freddie will deal with the rash of reports that attempt to skirt the issue simply by avoiding market condition adjustments altogther?

The policy is that the summary of the analysis must be included in ALL reports - not just those with non-zero time adjustments. An adjustment of 0 requires no less support/documentation than an adjustment of X%,

 

[Overimprovement]

The policy is that the summary of the analysis must be included in ALL reports - not just those with non-zero time adjustments. An adjustment of 0 requires no less support/documentation than an adjustment of X%,

Oh, I totally understand that. I guess I am asking if the policy will be more strictly enforced starting tomorrow.

 

[shrubberyvaluation]

I wonder how Fannie/Freddie will deal with the rash of reports that attempt to skirt the issue simply by avoiding market condition adjustments altogther? We all know that will be the first attempt by the skippies...

Can we get a crackdown on report quality? No more reports accepted where homes have different C or Q factors, but no adjustments? Or no market condition adjustments despite clear data to the contrary?

If we do, maybe the supply of appraisers will whittle down to appropriately meet the new demand for appraisers.

Quality? Who wants quality.

 

[bishopsnet]

So why are they saying we have to have this detailed market analysis and use an adjustment for the month the comparable was sold? Is that overkill or do we have to do it that way now? I use Titan Analytics and a custom spreadsheet for my closed sales analysis. However, those don't break down what the increase/decrease is for each month.

 

[TerryRohrer]

I wonder how Fannie/Freddie will deal with the rash of reports that attempt to skirt the issue simply by avoiding market condition adjustments altogther? We all know that will be the first attempt by the skippies...

Can we get a crackdown on report quality? No more reports accepted where homes have different C or Q factors, but no adjustments? Or no market condition adjustments despite clear data to the contrary?

If we do, maybe the supply of appraisers will whittle down to appropriately meet the new demand for appraisers.

Like everything else, just have one very recent sale in the report and be sure to select one that results in a range that includes the contract price. As they say around here, any price within the indicated range is supported. I have never heard of one that didn't fly through the system very efficiently.