This is a pretty niffty detailed chart for finding time adjustments, we are done.

[Joe Flacco]

That would be an exercise in futility with that little data. Perhaps that is why the is no requirement for monthly analysis - despite continued assertions to the contrary.

Unfortunately, that is what the illustration implies.

 

[Mike Ault]

Doesn't your MLS system have stats that you can customize to fit your subject? Like the new home market, or age restircted areas? Sometimes those markets hum along in their own little world,

I believe he was referring to what happens when he correctly defines his market but his report is reviewed by people who haven't. Collateral Underwriters reliance on "census tracts" to differentiate markets has generated many a defective observation in my area along with subsequent "warning messages" to be addressed.

 

[J Grant]

Pretty soon, there will be a hundred people left appraising, and 10,000 people looking over and nitpicking their reports.

 

[alebrewer]

Pretty soon, there will be a hundred people left appraising, and 10,000 people looking over and nitpicking their reports.

job security.

 

[DWiley]

Wait until the providers deploy their 'solutions'. Got a hundred spot they will look much like the graph published by the GSE's. Want some of that action?

No one has to wait for anything. I had (and used) tools that would produce graphs like that over 20 years ago.
Of course, the level of analysis possible depends on the available data, and monthly analysis simply is not possible in every case.

 

[alebrewer]

No one has to wait for anything. I had (and used) tools that would produce graphs like that over 20 years ago.

So Spark, a la Mode, ACI, and Bradford have already deployed their offerings?

 

[DWiley]

So Spark, a la Mode, ACI, and Bradford have already deployed their offerings?

The entities you listed have all been providing tools one could use in market analysis for years.

 

[alebrewer]

The entities you listed have all been providing tools one could use in market analysis for years.

That's a poor evasion from you, my friend.

 

[DWiley]

That's a poor evasion from you, my friend.

It’s not an evasion at all. Tools for appraisers to use for market analysis have been around a very long time. There is nothing in the announcement that requires any changes to the tools that have been available for a long time.

For those who have been using such tools the only new requirement is to put a summary of the analysis they have already been doing within the report.

Anyone who has not been doing such analysis already should read what SR 1-3 says about assuming market conditions.

 

[Terrel L. Shields]

should read what SR 1-3 says about assuming market conditions.

Does 1-3 demand we document those conditions in our reports? I mean a lot of us studied the market conditions from the MLS, from reports (we have something called the Skyline Report here), from other sources. Personally, in NE OK, I run the entire MLS dataset excluding homes under $30k and over $1M and have a spreadsheet by date and price and do a trendline. But I don't include it in the report. In NW AR I am more likely to use it city by city but same metrics. It's not like we didn't know what the market was doing, it was that we did not document it per se in the report.

So, question 2. I am not a believer in micro-market analysis. Meaning I don't believe that Subdivision A is increasing/decreasing while Subdivision B is moving in the opposite direction when they are in the same market. I might see differences in lakeside mansions and manf. home prices out in the hinterlands, but both 99% of the time seem to be going the same direction for the same reasons (interest rates and the economy.) So, at what level is the analysis most valid? City wide? County wide? MSA wide? MLS wide? There seems to be a fixation upon census tracts. Our census tracts haven't changed since the 1980s yet the demographic are wildly different. What good is a census tract?

So, if the appraiser doesn't know by which measure the FF FHA wants to measure us, how do we know?