Thanksgiving to Super Bowl

“Nothing happens from Thanksgiving until the Super Bowl is over”. This is a quote from a veteran agent I know. There is truth in this, other things being equal. Historically, the Minneapolis / St Paul market peaks in the summer, then declines through the fall and winter. Spring in the air energizes the market. People want to be out looking for the house of their dreams, and families with school age children want the process complete by Labor Day.
But there are other factors that drive the market. We are now seeing low interest rates that overwhelm historic patterns of buyer behavior. I just completed a new construction purchase appraisal in a pricey development where there were several more houses being built and scheduled to close in November and December.
How does this affect the appraisal process? Banks want the most recent comps to support an opinion of value. This could mean that August sales would be used for November appraisals. Or January sales would be used for March appraisals. This despite the seasonal difference, and maybe more importantly, buying power that changes with interest rates.

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