Priority Appraisal & Mortgage Services Real Estate Appraisals Blog

Housing Market Perspective 2017

I am often asked what is the housing market perspective 2017? Many of the lending institutions are reporting that the market will experience a decrease in values. This is due to personal income levels that are unlikely to support a significant increase in home values. As you may recall, prior to the collapse of the housing market in recent years consumers were finding it difficult to find affordable housing. The values had risen so significantly that workers with median incomes where not in a financial position to purchase (or maintain) the inflated housing values.

Interestingly enough, some of the major players are predicting several years of slight decline in housing values. However, many of the lending experts are not so bold to predict a decline in values but do predict a very slow and modest increase in values.

Nationwide housing prices have increased between 20-30 percent since 2010-2011. Following this period values were sluggish and are now slightly below their peak in 2007-2008. Overall the unemployment rate is at a much healthier level than in recent years. Of course low unemployment is typically good in relation to property values. The issue is the median pay levels which have not increased along the same levels as the decrease in unemployment.

As in the years preceding the housing collapse, it is unlikely that the income rate will increase at a fast enough rate to coincide and support a major increase in market values. The good news for now, is that all sources appear to expect an increase in property values through the end of 2016. This means if you are contemplating the sale of your property, now may be a great time to move forward. If you are a buyer, you may want to wait until the end of the first quarter of 2017 to begin shopping for your dream home. You may find it more affordable at that time.

cartoon-sledge-hammer-guy — Housing Market Perspective 2017

Buyers Market

Buyer’s Market: The tides are changing and we are seeing what has the earmarks of a seller’s market rather than a buyers market. What does the mean to buyer’s and seller’s and what effect does it have on value?

Sellers Market:

A seller’s market is what you have when demand is greater than the supply. Consumers are willing and able to spend more on real estate, so sellers will often see several consumer buyers competing to buy their property, which drives up the price. This means that buyers will have to spend more to get what they want. This is the ideal situation for sellers because they get a more favorable price for their homes.

Buyers Market:

A buyer’s market is the opposite and is what you get when there is greater supply than demand. There are more people offering to sell houses than there are people wanting to buy houses. In a buyer’s market, sellers may have to accept a lower price than they want to sell their home and may have to resort to offering monetary incentives. This is the ideal situation for buyers because they can get a great deal.

The change in tides makes this a favorable time for sellers to offer their homes for sale. They are more likely to obtain a higher selling price if buyers are competing to purchase a limited number of offerings. On a regular basis I am receiving reports that homeowners are receiving multiple offers. Many times the multiple offers are received within a few days of one another. The listing time is becoming shorter and shorter and overall the values have increased.

Priority Appraisal and Mortgage Services Inc. is a residential appraisal firm experience in all areas of residential appraising in the Tampa Bay area. Focused in the Pasco, Pinellas and Hillsborough counties for the past 14 years. At Priority Appraisal and Mortgage Services, Inc. our customers are out priority. We provide fast accurate appraisals in a timely manner. We go above and beyond to fulfill your needs with any and all additional market information to serve your requirements. For more appraisal info visit: http://PriorityAppraisalandMortgageServicesInc.appraiserxsites.com or call Shari Peterman directly at 727-505-6706. I look forward to hearing from you.

FEMA Appraisals

Federal Emergency Management

FEMA Appraisals are ordered by homeowners who desire to increase the size of their living area have a bit of a challenge when the property is located in a FEMA flood hazard area. In a nutshell, FEMA guidelines only allow you to increase your structure by 50% of the present value. Sounds simple enough but like everything, it’s not that simple. There are many significant components of your property that are not included in the value eligible to be increased by 50%.

Many situations call for a State Certified Appraiser to complete an appraisal on your property to prove the present market value in order to calculate the amount of increase in value allowable under FEMA guidelines. It is imperative that consumers hire an appraiser with expertise in this area. These reports call for the cost approach to value (based on the cost to rebuild less depreciation) that coincides with the sales comparison approach to value (based on recent sales in the market area). If this is not accomplished or if improvements are included in the wrong area, your renovation plans could be turned down by your local municipality.

It is imperative to ask your perspective appraiser if he/she has experience in this area. It is also advisable to retain an appraiser with a designation such as IFA, SRA etc. to insure that he/she has additional education in the appraisal field. Look for additional blog posts that will further explain the FEMA rules in greater detail. Further information can also be found at FEMA.gov. and your local County Appraisers office website.