Throughout 2014, statistics show home values have steadily increased each month over 2013 totals. In fact, homes prices have grown over the past two and a half years to such a point that many markets have seen values return to near pre-recession levels. Statistics also show the median price for an existing home has risen around 4.8 percent thus far in 2014.

As the market moves into fall, home values should continue to increase; albeit at a slower pace. Demand remains strong for homes by all types of buyers, which will only have a positive affect on home values. semantic database With values escalating, buyers are more likely to get off the proverbial fence and buy now instead of later, as they want to take advantage of values before the rise any further.

The fall months are typically a slower time for home sales, which can also have a slowing effect on values. With children returning back to school and the other various commitments that come along with the fall season, there is typically a decline in the demand for homes. Furthermore, the fall season usually ushers in inclement weather in certain parts of the nation, which almost always causes a slowing in home buying.

One factor that will slow the growth in home values this fall is the declining number of investors purchasing properties. Investor demand has been responsible for much of the increase the market has seen in values. While investors are turning their attention to other types of properties, this trend should only be temporary, as investor activity is expected to pick back up in 2015.

With values still a bit below average, the Midwestern states are expected to see the most growth in home values this fall. Values should either see a slight increase or remain stagnant throughout the rest of the nation.

The post Home Values – Fall 2014 appeared first on Rocky Mountain Appraisal, LLC.

• State Certified Commercial Appraisers are full-time specialists who exclusively appraise farm, mining and other commercial rural properties.
• Appraisals are prepared with Uniform Standards of Professional Appraisal Practice (USPAP). The only set of standards recognized by the State and U.S. governments.
• UAAR Standardized format helps assure uniformity and proper documentation in full form reports.
• State Certified and Accredited Rural Appraisers (ARA) prepare or supervise the preparation of your appraisal report.

We offer a three-dimensional perspective. For a realistic property value, our appraisers consider the three approaches below.

Cost Approach — Estimates what it would cost to duplicate the improvements to the property. The appraiser determines the value of improvements based on reproduction cost and accrued depreciated value. This is added to the bare land value.

Sales Comparison Approach — A specific analysis of recent sales of comparable real estate in the area.

Income Approach — Provides an in-depth study of rental income and expenses for the area, considering factors such as soil type, and highest and best use of the property.

Find out more about Rocky Mountain Appraisal at http://www.johnsonvaluation.com/. Email us or feel free to give us a call directly.

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Arizona Mining and Mineral Property Valuation Specialists

Mineral properties are somewhat rare although frequently contain a variety of different ore bodies. Hypothetically, If one is interested in aggregate products and the land visually contains a plethora, determining its potential value is relatively straight forward. Based on its size and approximate amount of ore the property contains as well as the current market value of the ore will provide a valuation range. Let’s now consider the valuation of the reserves and resources on that property beyond what is identifiable by the naked eye, that aspect is more of a challenges but one of the disciplines the Rocky Mountain Appraisal offers.

Rocky Mountain Appraisal is State Certified to offer valuations on all mining properties throughout Arizona.

As we are probably all aware, mining is one of Arizona’s largest industries and biggest employers in the state. Due to its abundance, copper has been mined for over a century out of Arizona, but we have an abundance of other mining taking place throughout the state. Everything from aggregate mining most everywhere imaginable, precious gemstones harvested out of the Apache Vanadinite Mine down in Gila, Arizona, Magnesium Compounds taken out of Mojave, Arizona, there’s even active gold mines operated by ASARCO in Pima, Arizona. The mining industry is diverse and a great source of revenue for our state.

Rocky Mountain Appraisal is State Certified to offer valuations on all mining properties throughout Arizona.

The Rocky Mountain Appraisal is certified through the State of Arizona offer valuations on Arizona Mining and Mineral properties. We serve the entire State of Arizona and have one of the best turn-around times in the business.

(480) 782-9291 Office
(480) 782-8409 Fax

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This award speaks to our commitment to our industry, our community and our integrity. This profession requires an abundance of time, continued training & education, time away from home, long hours, amongst other variables and we are truly thankful to be recognized for our commitment. We will continue to strive for excellence in all aspects of our business, which we hope will resonate with each of our clients, customers and colleagues.

Ranking Arizona is based entirely on voter’s opinions. Individuals vote based on quality of product, service and who they would recommend doing business with. The responses are then assembled and ”ranked” according to their total number of votes. webhosting info . Ranking Arizona Magazine is published annually and consists of controlled mailed distribution to primarily upper management executives, presidents, principals and small business owners throughout the Arizona Community.

If you have an opportunity, please take the time to vote not only for the Rocky Mountain Appraisal, but all of your other favorite local businesses throughout Arizona, you can do that by clicking here.

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How to value Fractional Interest in Real Estate ~ Partitioning costs.

“How do I divide or value property that is owned as Tenants in common Imagine that you own a property or a parcel of land with another person – a sibling, a friend, or a spouse. But then your interests diverge; you and that person have different ideas about what to do with the property; in particular, how to use, improve, or dispose of it.

Say, for example, one of you wants to build or expand a house, the other wants to start a farm. Or that one of you wants to sell the property, the other wants to maintain it for generations. Perhaps one of you wants to rent it out, the other wants to leave it unoccupied until some future date when it will be sold. Your efforts to negotiate or compromise are getting you nowhere; you’re stalemated.

A partition, or division, of property can be arranged on a voluntary basis if all owners agree to it. However, if they don’t agree, a judge can order a partition of the property based on one owner’s request. If done gracefully and with agreement, it can result in a more efficient splitting of the property where all of the former owners are happier owning their own portion.” This explanation is provided by Brian Farkas, attorney at law. Mr. Farkas is an associate attorney with Goetz Fitzpatrick LLC in New York.

The interesting valuation question arises on how to value fractional interest of real estate. Believe it or not, the IRS accepts partitioning costs in order to calculate discounts for valuation purposes for Real Estate valuations as well.   This can be an acceptable way to develop a discount for fractional interest.  Something well worth understanding for such as issues as “Tenants in common”.    Definitely worth knowing.

The post What is an acceptable discount for fractional interest ~ Partioning appeared first on Rocky Mountain Appraisal, LLC.

The NAHB’s HMI index came in at 68, down three points from March’s 11-year high. Industry sentiment is strong if the index is more than 50.

Sales expectations also slipped but remained strong.

Home builder stocks are up in Monday morning moves. That includes gains for Scottsdale-based Meritage Homes (NYSE: MTH). The Arizona builder is up 1.05 percent at $38.35, according to Google Finance.

Meritage is up 10.2 percent so far this year.

Mike Sunnucks writes about stocks and financial markets, real estate, government and sports business.

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The nationwide average 30-year mortgage jumped to a seven-year high of 4.61% in May from a low of 3.78% last year. The Fed has signaled more rate hikes on the way and the market is pricing in a 44% chance the FOMC raises rates three more times in 2018.

Investors have fled anything housing-related, sending the iShares U.S. Home Construction ETF (NYSE: ITB) plunging 12% since the beginning of the year.

While rates are likely to rise further, the market is missing one very important number. This one stat could support higher home prices and activity in the sector.

Share prices have fallen into value-territory and could snap back when investors realize that higher rates aren’t slowing sales for housing stocks.

The One Number That Could Start Housing Stocks Building Higher
The selloff in housing-related stocks this year has been brutal. The Home Construction ETF started falling just a week before the January meeting of the Fed and has erased nearly 16% of its value.

And it’s not just homebuilders feeling the pain, real estate REITs are down broadly, with the Vanguard REIT ETF (NYSE: VNQ) falling 8.3% so far in 2018.

However, one overlooked statistic appears to support higher prices and activity in the sector for years to come.

The National Association of Realtors (NAR) reported just 1.67 million existing homes for sale at the end of the first quarter. That’s down 7.2% from the same period last year and Glenn Kelman, CEO of real estate firm Redfin, was quoted in an interview with CNBC saying, “[Inventory] has never declined faster. It’s freaking us out.”

The Monthly Supply of Housing, a measure reported by the Federal Reserve of houses for sale versus purchases, dropped to 5.2 months in March. That’s 15% lower than the average, going back to 1963.

There are many theories as to why inventory of homes for sale is so low, from rising prices making housing unaffordable to reluctant baby boomers. Trulia used statistical analysis in a study last year and found new home construction, or lack of it, has been the biggest factor. In fact, home building as a factor in inventory was almost four times stronger than any other factor.

Not only is the supply of homes for sale falling but demand may actually be more robust than the market assumes in a rising rate environment.

According to the University of Michigan consumer sentiment survey, 39% of respondents said home selling conditions were optimal, the highest level since 1992, and 16% (most since 1980) said they don’t see prices coming down.

3 Housing-Related Industries That Win On Low Inventory
The most obvious winners in all this are homebuilders and home improvement retailers. The lack of inventory in existing homes for sale mean homebuilders can increase prices without losing potential buyers.

The NAR also reported recently that the median single-family home price is up 5.7% from the first quarter 2017. That year-over-year increase is higher than the increase reported in the fourth quarter.

PulteGroup (NYSE: PHM) is one of the largest homebuilders in the United States, with operations in 25 states and a strong focus in the Southeast. Single-family homes make up the bulk of sales (88% of units) with financing through the company’s owned subsidiary.

Nearly all the homebuilders reported surprisingly strong first-quarter results against higher rates, but PulteGroup blew through analyst expectations with a 21% rise in year-over-year revenue and a 10% increase in home deliveries. New contracts signed during the quarter were also up 12% and the company reported a backlog of 11,245 homes, representing more than two quarters’ worth of deliveries.

Management has been shifting to margin improvement ahead of rising rates, increasing operational profitability by 2.7% during the quarter. Earnings are expected higher by 61% this year to $3.32 per share on stronger revenue and profitability.

The Home Depot (NYSE: HD) could benefit from both an increase in home building and people remodeling their homes instead of selling. The world’s largest home improvement retailer saw its shares slide after a disappointing first-quarter report due to a late start to the spring building season.

What Wall Street missed is that management increased its full-year sales guidance, leading me to believe that the missed first-quarter sales will be made up and second-quarter results could surprise higher.

The company has been one of the few retailers to withstand the shift online and may even benefit as competitors like Sears close stores. Earnings are expected higher by 27% this year to $9.45 per share for a forward price of 19.8 times earnings.

Apartment REITs have also started the year on a down-note with higher rates compounding fears of over-supply in apartment building in the years after the housing bubble burst.

The boom in building could quickly turn to a deficit though. New construction in multi-family units fell 13% in March, according to the Commerce Department, and permits for future building fell 6% from a year earlier.

As prices continue to rise for single-family homes and lack of homes for sale give buyers fewer options, apartment rents could jump higher.

AvalonBay Communities (NYSE: AVB) owns and operates more than 285 apartment communities in 10 states, almost exclusively in large markets along the East and West coasts. Funds from Operations (FFO) increased 6.4% in the first quarter from the same period last year on strength in the West Coast business, and the company was able to keep occupancy steady even after a 2.5% increase in average rental rates.

Avalon Bay completed three communities in the first quarter and has another 18 in its developmental pipeline to support growth. Shares pay a 3.5% yield, which still gives the company ample cash to rely less on debt and a capital raise.

Risks To Consider: Rising rates could continue to drag on investor sentiment for housing-related stocks even as macro-factors support stronger activity.

Action To Take: Look to beaten-down housing stocks ahead of a potential rebound as historically-low supply supports home prices and activity.

The post Strong Demand Remains but for how long appeared first on Rocky Mountain Appraisal, LLC.

We are pleased to announce that for the second year in a row, Rocky Mountain Appraisal was voted among the top 10 Appraisal Firms in Arizona by, “Ranking Arizona.” The Best of Arizona Businesses.  Thank you to our clients, colleges and friends for voting for us.

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