Fannie Mae 1004 MC Trends Question. How far back does one have to go to establish a declining market trend?

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Comment by Bill Cobb on April 2, 2009 at 8:37am

One Appraiser answered this way:
"Bill,
One of my pet peeves with the appraisal report forms is that they do not specify the time period being addressed. Indicating a trend without indicating the time period is like quoting a value without saying what kind of value it is. Market Value? Investment Value? Liquidation Value?

This is especially true right now. Just yesterday I wrote about prices declining in an area from 2006 through the first half of 2008, but increasing slightly since that time. What is the trend? Depends on the time frame.

As appraisers do their market analysis I think it is critical that we tie a specific time frame to our indication of trend (even though the forms don’t specifically ask for that) otherwise we are not really communicating effectively.

DW"