I have been providing valuation reports for Colorado Front Range real estate for many years, now. Even before I had a real estate license, I have done this sort of thing: statistical analysis of values for real estate as a banker or a Realtor®.
One of the historical anecdotes I have observed is that values are, in fact, changing more rapidly each year. Why? When I first began doing such things, information traveled so much slower, and the processes were more manually performed. This was actually true of all information processed. Computers hit the scene, but mostly to perform math and engineering calculation. As they have evolved, shrunk, and grown in capacity and speed, the amounts and types of information they now process has increased millions of times over.
That brings us forward to the question at hand. With all of the information availability and speed out there, is it possible to rely on the old school ways for an accurate approximation of value on your property? I am not sure if the tried-and-true CMA (Comparable Market Analysis) is the most accurate measure. There are other factors I believe are important to calculating the approximate value of a property.
I am in the process of researching factors in the economy which affect the market value of a property. I’m examining a variety of factors which affect the ability of a house to sell for a particular price in a particular area. I find that the health of the economy determines the ability of a particular buyer to afford a home.
Stay tuned for this examination into the economic vectors which affect home prices. Markets are current in more of a real time view than a point in time. In order to understand the market, I believe it is necessary now, and going forward to be able to look for those things beyond location in order to understand the value of your real estate.