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No "Declining Market" per my appraisers in Huntsville, AL

By
Real Estate Agent with Craig LaMar, Real Estate Consultant

I realize all real estate markets are local, but wondered if you are hearing similiar trends from appraisers in your market area, or if you have had any appraisal "surprises" the day before closing. We have had several in the last 4 weeks, so I met with a group of appraisers yesterday to talk about appraisal trends in our market area; based on their recent appraisals, they stated that Huntsville, AL http://www.hsvcity.com/about/index.php is not in what they term a "declining market"......... that was good to hear.

They did have concerns about days on market. That was a new twist to me....With ever new guidelines for financing loans, the investors providing the loan funds are having the underwriters look at things they never scrutinized before...such as days on market. "We had an underwriter (out of our market area) to look at our appraisal, see the days on market and could not underwrite the loan because their investors would not provide funds for any property that had days on market over  6 months. The investors reasoning was that if the property was on the market over 6 months, either the property was overpriced, subpar-condition, or the market in which it was located was a declining market".

The appraisers also had concerns about new construction homes that have been sitting on the market for months and months; they felt that the builders may adjust prices further or offer new and significant incentives to potential buyers. And if the houses went back to the bank, then the banks would have to dump them in the market and that would affect property valuations.

And as my firm does quite a bit of relocation, they talked about the new guidelines wanted in the appraisals by Relocation Companies. "Now an outside and/or inside photo won't do....they want us to provide multiple photos of exterior and interior....especially interior. If they see highly personalized interiors that will need reflooring, repainting, etc to bring to marketable condition, then they adjust their offers to the transferee accordingly"

Stay In Touch,

Craig

Carole Lhuillier
Keller Williams Realty SunCoast - Saint Pete Beach, FL
Our Home Team SunCoast

Days on market is certainly a concern and we are finding that this is a definite trend in the Atlanta market - extended time periods that homes are on the market.

Hope it turns around soon.

Carole Lhuillier

Aug 13, 2008 09:24 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Here in the Sacramento area, we are averaging 4 months on the market.  We are also experiencing a tremendous amount of REO sales, and these tend to be less in value than those properties being sold by traditional sellers.  Although our number of sales are about 30% more than a year ago, our prices have declined by nearly the same percentage.  We are working our way through inventory.

Aug 20, 2008 02:54 PM
Craig LaMar
Craig LaMar, Real Estate Consultant - Huntsville, AL

Carole: It was encouraging to hear the local Huntsville, AL appraisers say that in their opinion our Huntsville market area http://www.hsvcity.com/about/index.php was not a "declining market". My recent trend analysis shows a 33% drop in closed units YTD versus the same time last year; and I am seeing a similiar decline in my production which is 25% behind last year. Local days on market are climbing every month with our average now being 112 days; with current inventories at 7.61 months. It's a tremendous opportunity to purchase here in Huntsville, AL......for qualified buyers.

Myrl: That's great that your sales in Sacramento are 30% more than last year; Ours are 33% less YTD than last year but our average sales price is up 12%. Inventory is an issue in our market also; the market was scorching hot for the last 18 months with multiple offers on many homes and some sellers have not yet grasped that we are in a buyer's market; and we are suffering from too many homes on the market as track developers opened up the vaults and placed hundreds of homes on the ground in anticipation of the BRAC (Base Realignment and Closure) which is bringing 4700 jobs and a 4-star command center from VA/Washington,DC to our Redstone Arsenal along with 5000 contractor support positions. Unfortunately, they did not coordinate with our Chamber efforts to discover that the bulk of those positions will not be opened until 2010 through 2011. You can see more about it at http://www.huntsvillealabamausa.com/

By the way, if you know of anyone moving to or from our area, I'd appreciate your passing my information along to them. I'll help them to find the most house for their money if they are moving here; or get the most money for their property if they are leaving.

Aug 20, 2008 03:39 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Craig - I have added you as one of my ActiveRain Associates, in case I have anyone headed your direction that I can refer to you!

 

Aug 20, 2008 05:58 PM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo
 

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Sunny San Diego!

Jun 22, 2012 12:12 AM