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Prices Going Down After Election

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Fernando

Elite Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
I'm working on this appraisal and I'm seeing prices which have been steadily increasing suddenly now have listings which are on market for too long. My listings are showing trend of prices going down especially after the election. Don't know if it's a coincidence. May be it's the holidays. I'm tempted to buy a property for sale which I think is low but why still on market? Market was good during summer but now, the market looks weak. What's happening?
 

reviewbe

Sophomore Member
Joined
Oct 4, 2016
Professional Status
Certified General Appraiser
State
California
My cousin, a plumber, tells me that SF market has been weakening for a few months now. Which would be expected when prices get so ridiculously out of whack. And when a plumber can call a turn in the market, it must be pretty obvious. May start to see softening in the rest of the bay area, as it's been quite a run up just about everywhere in norcal.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Typically prices reach a tipping point where no more increase can be absorbed and then only way to go is down...or if lucky stabilize.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Well before the election they dipped down from ridiculous. I have 1004MCs showing decreases in the past three months over the prior three months.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Am I to believe prices should only go up? Couldn't have anything to do with supply, or rising interest rates, or the winter market, its because of the election.....got it. One of the questions I get peppered with during an inspections is, "So are real estate prices still going up?" I always beg off and say, "The lender is primarily interested in where prices are today based on the most recent sales. Its hard to predict the future of prices."

Check the Decline box and say, "Prices are declining because of the election." and see if you get stipped.
 

Fernando

Elite Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
So after I finish the appraisal report. I got another order in same area. Just my luck. I'm afraid this purchase will lower the value in area even more. I will see soon why this sale is lower than what it should be.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
So after I finish the appraisal report. I got another order in same area. Just my luck. I'm afraid this purchase will lower the value in area even more. I will see soon why this sale is lower than what it should be.

As appraisers, we should not be vested in whether the next purchase "lowers the value" even more. The market corrects after a price rise binge. Your comment that sale is :" is lower than it should be" is scary. That means you think prices "should be" X. Prices are what they are due to market conditions, Interest rates are creeping up. Now we see if there are over valued properties when interest rates were low ....it was the buyer's decision to pay high to get a lower interest rate.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
So after I finish the appraisal report. I got another order in same area. Just my luck. I'm afraid this purchase will lower the value in area even more. I will see soon why this sale is lower than what it should be.

I would be curious about the buyer and the seller.

Why is the seller, selling? Moving out of state? Lost job? Can't afford to live there?

Why is the buyer, buying? Local, trading up? Promotion? Moving in from another state?
 
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