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Stop trying to measure RE sale prices trends against inflation!! Some appraisers like to complicate things to make themselves appear knowledgeable, or more important than our rather inslated status implies. Appraisers can barely do their own jobs, let alone take on the job of the FED and financial experts who can barely range inflation and what it means in any cycle.
Something about the stark transparency of the correlation is interesting maybe because i never even thought about that comparison. OTOH everytime I determine the 1004MC checkboxes I wonder how peers would categorize thw data, e.g., are doubled valuues during the past 6 months increasing, or stable if the current 3 months are Identical to the 6-9 month values? Is exposure that increased by 700%, from 4 to 28 DOM, actually significant if 28 is near historical low exposure? [[Unsure whether new format will eliminate that type of subjective, relatively arbitrary decisions, or if so, whether thats goodnor bad!!! ]]
What I can’t determine from your post is what is the market doing now? Is it still increasing at that rate or did it slow down to stable? If it is the later, then mark it as stable and talk about what you just said in your comments. If it is still increasing, mark it as such.
J..G., I always respect ur opinion and appreciate ur involvement... but perhaps you are criticizing the potential value of this type of analysis just because you're not accustomed to it. Possible?
True it does say "property values" on the form, so this should be correct, of course the powers that be don't care about correct, they care about conformity.
I think it is beyond the appraiser's SOW or purpose to be measuring property values ( prices in raw data ) relative to inflation. I at least do not pretend to have that level of expertise. We are evaluating prices, hard stop - are they rising, declining, or stable ? Trying to tie it to an inflation rate can be misleading IMO and inadvertently lead to an incorrect result. Espeically as any review is going to stick to what the RE property prices are doing, which was the question asked.
Why would that be correct? If values increased at the same rate as inflation, then the values still increased, no?
Well, i have learned how different a linear time adjustment can be from a non linear time adjustment, the micro can be different from macro time. Oh, i love the fluctuating monthly/quarterly with both increasing and decreasing time lines.
