The value you get from a valuation provider might depend upon when you place your order
DES PLAINES, IL — November 16, 2016 — Summit Valuations, LLC, a full service valuation company, announced today the release of its most recent Residential Real Estate Market Overview, this time based on data collected during September 2016, the most current industry information available. The report includes analysis from Summit’s Chief Valuation Officer, Mark Melikian, author of the report, and focuses, in part, on the seasonal variation in home prices.
Melikian studied real estate pricing data from January 2012 through June 2016 and the pattern is quite clear. Every year in the studied period, the highest median sales price was recorded in June. From 2012 through 2015, January has produced the lowest median sales price. The low median price in 2016 was in February.
“If you are seeking to value a portfolio of residential real estate assets, the timing that the valuation is established might influence the results,” Melikian said in his report. “A valuation report created in the first or second quarter of a given year will likely rely on comparable sales in and around January. This will tend to reflect the lower median sales prices that have been shown to occur early in the year. Conversely, a report created in the third or fourth quarter of a given year will likely rely on comparable sales in and around June. This will tend to reflect the higher median sales prices which have been established to occur during that time of the year.”
Melikian pointed out that there are some exceptions that could cause valuations to deviate from this pattern. These include increasing or decreasing prices and other local economic conditions, a property’s external influences and the condition of the property.
“Whether these influences directly impact a property or not, the data shows the timing of available comparable sales is a contributing factor that must be considered in a property’s valuation,” Melikian said.
In September 2016, the unemployment rate, mortgage rates, the month’s supply of housing and the number of existing homes sold all decreased on a year over year basis. Meanwhile, the median sales price and the pending home sales index both increased year over year.
On a regional level, the South had the highest number of existing home sales and the West had the highest median price. All regions experienced increases in the number of seasonally adjusted existing home sales with the Northeast having the highest increase at 5.7%, month over month. All regions experienced decreases in median sales price, month over month with the largest decrease in the Northeast at 4.6%.
Summit’s report provides data made public by the U.S. Government, the National Association of Realtors and Freddie Mac. Melikian has been appraising real estate since 1987 and has been active in nationwide valuation services since 2005. He has successfully led teams of analysts, developed valuation services to meet client needs and represented buyers and sellers in secondary market loan tie out meetings. Much of his recent experience has focused on forensic reviews of REO properties for Fannie Mae and Freddie Mac. Mr. Melikian holds a B.S. in Business Administration from San Diego State University.
About Summit Valuations:
Summit Valuations, LLC, Niles, Illinois, was established in 2007 as a full service valuation company offering a single source for nationwide real estate valuations, including residential and commercial BPOs, inspections and full appraisals. The founders applied over 20 years of national real estate experience to build a company that has built its reputation based on higher standards and superior results. All reports can be delivered to our customers via email or downloaded from our secure website. The company’s services are designed to offer faster turnaround times, thorough quality assurance, streamlined ordering and delivery processes, and accurate results. As one of the fastest growing property valuation companies in the country, Summit is dedicated to accuracy and unparalleled customer service. Find out more by visiting the company’s website.
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