Appraisal Blog

The increase in the number of "foreclosures" and "short sales" is keeping the values down.  Typically a foreclosure in the neighborhood was ingnored by the agents and appraisers as it was not typical.  But now, because they have become common, they have established the Market.  This has forced the sellers who do not need to sell, to lower their prices so they can compete with the bank owned homes.

Everyone seems to be riding the fence to see if prices will go down further and/or interest rates going lower.  If this continues then it may force prices even lower.

When will this cycle end?

Larry J. Lynn, SRA (ca certifed appraiser / real estate broker)