Stable Market

[Fernando]

First glance IMO revealed that your perspective is straightforward, and the answer is obvious.
HOWEVER, a more meaingful question wold be "Did our revenue increase during the period?"

So more volume with low fees is fine with you. That's not my business model.

 

[Fernando]

I would say a 3% increase range is stable. Obviously stable doesn’t mean zero otherwise that term wouldn’t even exist. By that definition a .01% increase would be increasing. There’s some judgment call to this work that we do. A lot of judgment calls if we’re being honest.

Appraising is lot of judgement calls. Fernando has good judgement. So good.

 

[Fernando]

I often encounter increases of one-half-percent/month, or approx 6% annually, although as mentioned previously on the AF, data within the most recent two to three months usually is too recent to analyze accurately, and also including a traditional Holiday December impasse. Kinda straightforward to apply that data to the SC grid based upon competing sales if possible.

You are so good to accurately find increases of one half percent. And I thought I was good.

 

[Charles West]

If you remove the amount of inflation from the price appreciation rate, you are comparing apples to apples. Appraisers and the market judge real estate by price, expressed in units of value, i.e., dollars. If real estate prices are rising, they rise concurrently with the declining value of a fiat currency due to inflation. I have always thought this was a more conservative approach to looking at things, especially when making time adjustments.

 

[ZZGAMAZZ]

So more volume with low fees is fine with you. That's not my business model.

Aint like Im sitting here at home watching Pickleball on TV because this is what i want to be doing. Zero Work isnt such a lofty deal when Work is all one knows what to do...

 

[Fernando]

When in doubt or when changes less than 3%, not conclusive and call it stable.
Only time I saw obvious price decline here was right after September 2008.
I called mortgage brokers to refinance their clients before comp prices hit the chit down.

 

[TerryRohrer]

If you remove the amount of inflation from the price appreciation rate, you are comparing apples to apples. Appraisers and the market judge real estate by price, expressed in units of value, i.e., dollars. If real estate prices are rising, they rise concurrently with the declining value of a fiat currency due to inflation. I have always thought this was a more conservative approach to looking at things, especially when making time adjustments.

Where did you find inflation rates by market area to compare to real estate prices within the same market area? Or were you comparing the one-size-fits-all, national CPI to every market, regardless of how they might differ?

 

[Fernando]

Aint like Im sitting here at home watching Pickleball on TV because this is what i want to be doing. Zero Work isnt such a lofty deal when Work is all one knows what to do...

You make it seems like new model is working for peanuts with large volume.
In SF, minimum wage will be slightly over $19/hour starting July 1. Keep that in mind if it's economical to work for low appraisal fees.

 

[Charles West]

Where did you find inflation rates by market area to compare to real estate prices within the same market area? Or were you comparing the one-size-fits-all, national CPI to every market, regardless of how they might differ?

I never felt comfortable adjusting for time because it always felt artificial, especially in the gung-ho days. I used the core rate quoted by the Fed, which is about as close as you can get, and since M2 affects us all, I thought it was ok for comparative analysis.

 

[Fernando]

I never felt comfortable adjusting for time because it always felt artificial, especially in the gung-ho days. I used the core rate quoted by the Fed, which is about as close as you can get, and since M2 affects us all, I thought it was ok for comparative analysis.

Real appraisers know time adjustments are most difficult and should be avoided. Should just stick with same market condition comps whenever possible.
Strange how Fannie encourages us to do time adjustments.