You are going to start seeing downward adjustments in appraisal reports for changing market conditions. Although the issues within the commercial real estate, CRE market are well known, it may be a jarring experience to see the adjustment applied to your property.
A recent March 2023 McKinsey and Company report indicates that real estate developers are pausing, or even canceling, development projects that were otherwise ready to go. In some cases, projects already under construction have been stopped.
There was a time that the city was quiet for July and August…then just August…now, it’s busy all summer long. The financial markets aren’t taking the summer off, that’s for sure. The stock market has been riding the proverbial teeter-totter with good days and bad, reactions and preemptions.
The Warren Group tells us that in Massachusetts, “the median sale price for both single-family homes and condominiums declined in April as the lack of inventory and elevated interest rates continued to weigh on market activity.” Single family sales declined 25% compared to 23 months ago. “Meanwhile, the median single-family sale price declined on a year-over-year basis for the first time since 2018
When completing an appraisal there are many steps that appraisers must go through, from preparing to complete an inspection all the way through to signing and submitting the report. One of the biggest and most important aspects of completing an appraisal is to identify the best comparable sales to use in developing a credible opinion of value.
Not my headline. However, a good place to start the new story of once upon a time! Over time, the built environment has responded to the physical needs and desires of the community for sustenance and survival. Now those needs and desires are changing, and so are the dreams! The rather remarkable rate of change in retail and, now, office property has significantly impacted the value in use of commercial property.
The appraisal profession – in particular, residential mortgage appraisal – is undergoing a significant period of change and upheaval. Much of this change is being imposed upon the profession from without. Some wonder if the profession, through its glacial pace of evolvement
Does the slow down bring you into an irrational panic? EVERY SINGLE TIME for me. I know the logic is that it is temporary, it’s been done before, and all is good in the world. But here we go again. Whether it is seasonal (busy summer, slow winter), or cyclical (1987 highs and 1990’s lows, 2008 crash, COVID boom and now interest rate slow down
The world is abuzz with chatter about artificial intelligence (AI), and how it will help or hurt society, economy, ethics, culture, our very being. Although it seems relatively new, most people are unaware of the history of the activity.
You must know what you are doing in this market. Borrowing from a counsel of the trade, I talk with measure. Let us examine the property and the location. Portfolio considerations are compelling and time sensitive. Action makes sense. With limits on liquidity and capital, commercial property
