On Uncertainty in the Market

Real estate can be a roller coaster even in the best of times. The universal truth about the future is no one knows what’s in it. 

For the last several years, the housing market has weathered a tumultuous set of ups and downs with more uncertainty about the future of the market ahead.

From an appraisal perspective, we are mostly backwards looking as an industry. We take our information about your home value from what sales have already happened. In some markets, like the wild run up of 2021, this can be a problem for buyers competing over limited inventory because deals had not yet closed. This is the same effect in reverse right now. Before any change in the market can affect you, it must first affect your neighbors.Appraisers are looking at the value of your house right now, not speculating about the future. 

As both an agent and an appraiser, it is a reminder to me that buying smart beats maxing out your budget every time.