Market Conditions???????????????

My understanding of the form 1004MC is that it applies only to properties that are comparable to the subject.  My understanding of the Market Conditions section of the Form 1004 is that it applies to the local neighborhood or the marketing boundaries as defined in the Neighborhood boundaries. 

A market can be as small as one subdivision especially if that subdivision is unique to its surrounding homes. I'm finding many of the modest and lower end homes have bottomed out and are beginning to increase, probably due to the first time home buyer tax credit. Good luck since there seems to be no standard in underwriters!

I recently took a McKissock appraising in a changing market class and the instructor stated that fannie mae recognizes that the neighborhood section is filled out per the 1004mc form and that if your not consistant with the 1004mc form the underwriters will be confused so I just blurbed it up.  Telling them exactly that.

In my Market Conditions Comment on Page 1 of the URAR, I elaborate on those conditions forcing the comment onto an addendum page (Yes, mostly boilerplate).  I conclude by developing the argument that the 1004MC has no relevance in my service area of Northern Michigan and conclusions indicated by the form must be dismissed based upon lack of adequate sales and listing volume and an annual market of 12 months with a annual winter dormant marketing period of 7 months leaving a 5 month active market each year.  This blows the quarterly sales trends of the 1004MC out of the water.  I'm sure it's different in market areas which remain active throughout the year.  But your defined market area, even if only a subdivision, is where the information must be drawn.