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Not sure I follow this. But price trends should be irrespective of the value of the USD and it does seem to be what is important for us. The value trend of properties can be different but I don't think it really matters for our purposes.
Wouldn't it? I mean if zero, and the overall inflation rate is 2% or more, you are losing ground right? I mean my IRA's buying power has been reduced by Biden's inflation by some 30%, yet the balance is near identical to when he was elected. I've had to take distributions that are nearly equal to the gain on the investments. But the buying power of that IRA is much reduced from 2019.So if 4% annual increase = stable and 8% annual increase = increasing, then 0% annual change = declining?
Exactly my point. We are talking about changes in the price of houses, period. Adding extraneous, arbitrary measures of inflation of some goods and/or in the value of the dollar, and/or prices vs. value, are useless and ensures nothing will be accomplished. The only matter on the table in this discussion is changes in home prices over time.
What relevance does the buying power of your IRA have to the description and measurement of the rate of change in real estate prices? We are not looking for reasons why real estate is changing price, we are looking to describe the change in prices of real estate...only.
I don't think you can just look at prices. What about DOM, buyers asking for and getting concessions, how many listings have had at least one price reduction, how many sold over list? For me, where the rubber meets the road, its what's going on with the listings, because that will tell you more about the market today than some sale that's x months old.
The question is "Does stable indicate a fixed change from a baseline that is level? Or is it a second derivative of a trendline that, long term, has gone up since this nation was created?" The current trend further needs thought in terms of total price, or price per SF. Would that not impact the assessment?
Right now in markets I work, overall, sales are down, prices are not down, DOM are up, and the list to sales price ratio is increasingly lower selling prices and more reduced price listings. So, is the market 'up' ? or is it 'down'? What metric is the "right" metric?
For the purpose of the appraisal does it matter if home prices are rising due to inflation or other factors? Or if the market is declining in prices and there is inflation do we need to know that values have actually declined more than prices show?
So when the question is, what is the trend in one-unit housing VALUES, you think it means list price to sales price ratios, marketing time, tax rates, and every other thing that appraisers consider in the completion of a report? Is there any question that can be asked of an appraiser that can be asked specifically enough to generate an answer to just the question being asked? What if you were asked what the dollar difference in price was for a home that sold for $100,000 and sold again for $110,000? Apparently, 10 appraisers would conclude 743,278.7 different answers, each spun with every extraneous bit of garbage known to exist.