By: Mike Holzheimer
Collateral Analytics has developed a new automated ranking system to objectively define the market condition of individual real estate markets ranging from specific neighborhoods to cities, states or the country. U.S. This new system is completely data driven and is based on the same market indicators which are used by appraisers in the Market Condition Addendum of the standard 1004 Appraisal Report.
“It seems that everyone has an opinion regarding the state of the real estate market,” Collateral Analytics President and CEO Michael Sklarz said in a press release. “Most of these opinions are anecdotal and subjective, which is unfortunate given the importance of the real estate market to the larger economy. The Collateral Analytics Market Ranking System provides a straightforward and systematic way to do this.”
The CA Market Condition Ranking system is based on the magnitude and trends of the individual market indicators, and then is combined to create the qualitative market ranking that includes ratings such as “Normal,” “Distressed” or “Hot.” The automated system defines current and historical market conditions for any geographical area, property type, property characteristics or price range.