Section 17

Market

Appendix F-1, page 178

The Market section always displays and provides information about the current metrics of a market area, determined by the appraiser. This section focuses on defining the market area, the geographic area, the associated sales and listing activities that directly compete with the subject, and the trends determined by that information. The Market section provides space for additional commentary and graphs or other exhibits to support the market analysis.

Reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific guidance.

General Information#

Market: General Information

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.003	Market Area Boundary	Always required	Free-form	Market Area Boundary Description: Describe geographic boundaries of the defined market area (e.g., streets, waterways, county or state lines or other natural boundaries). The description may include north, south, east and west. Note: A map of the market area boundaries showing Active Listings (17.005), Pending Sales (17.010), and the Sales in Lookback Period (17.012) may be provided, which displays in Market Exhibits. Provide a caption to label the image, such as "Market Area Boundary Map".
17.004	Search Criteria Description	Always required	Free-form	Search Criteria Description: Describes all of the search criteria used to identify specific properties within the defined market area boundaries. Note: An image of the search criteria (such as a screen shot of the MLS search screen) may be provided, which display in Market Exhibits. Provide a caption to label the image, such as "Search Criteria".

Search Result Metrics#

This subsection reflects properties in the defined market area that directly compete with the subject.

Active Listings#

This subsection is for active listings only. Do not include properties that are under contract (pending sales) in these metrics.

Market: Search Result Metrics - Active Listings

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.005	Active Listings	Always required	Number	Active Listings: The number of active listings in the defined market area that directly compete with the subject, as of the appraisal effective date. Can be 0.
17.006	Active Listings Median Days on Market	Required when there are Active Listings	Number	Median Days on Market for active listings in the defined market area that directly compete with the subject, as of the appraisal effective date.
17.007	Active Listings Lowest List Price	Required when there are Active Listings	Dollar amount	Lowest List Price for Active Listings in the defined market area that directly compete with the subject, as of the appraisal effective date.
17.008	Active Listings Median List Price	Required when there are Active Listings	Dollar amount	Median List Price for Active Listings in the defined market area that directly compete with the subject, as of the appraisal effective date.
17.009	Active Listings Highest List Price	Required when there are Active Listings	Dollar amount	Highest List Price for Active Listings in the defined market area that directly compete with the subject, as of the appraisal effective date.

Pending Sales#

This subsection is for pending sales only, which may include the subject property if applicable. Do not include active listings in these metrics.

Market: Search Result Metrics - Pending Sales

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.010	Pending Sales	Always required	Number	Pending Sales: The number of pending sales in the defined market area that directly compete with the subject, as of the appraisal effective date. Can be 0.

Sales within Lookback Period#

Reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific requirements for the minimum lookback period.

Market: Search Result Metrics - Sales Within Lookback Period

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.011	Sales in Past __ Months	Always required	Number of months	Lookback Period: The number of months back from the appraisal effective date that the appraiser used to analyze and report on sales.
17.012	Sales in Past __ Months	Always required	Number of sales	Sales in Lookback Period: The number of sales of competitive properties in the defined market area during the lookback period.
17.013	Lowest Sale Price	Required when Sales in Lookback Period is not 0	Dollar amount	Lowest Sale Price in Lookback Period: The lowest sale price of the competitive properties in the defined market area during the lookback period.
17.014	Median Sale Price	Required when Sales in Lookback Period is not 0	Dollar amount	Median Sale Price in Lookback Period: The median sale price of the competitive properties in the defined market area during the lookback period.
17.015	Highest Sale Price	Required when Sales in Lookback Period is not 0	Dollar amount	Highest Sale Price in Lookback Period: The highest sale of the competitive properties in the defined market area during the lookback period.

Distressed Market Competition#

Market: Search Result Metrics - Distressed Market Competition

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.016	Distressed Market Competition	Always required	Yes \| No	- Yes (the presence of distressed sales activity (e.g., REO, foreclosure, short sale) within the defined market area is a factor and impacts the market). - No (there is no distressed sales activity, or there is minimal activity that does not impact the market).

Graphs and Price Trend Information#

The information in this subsection is based on the appraiser's identified Lookback Period.

**Market: Search Result Metrics - Graphs and Price Trend Information**

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.017	Graph	If applicable	Choose all applicable answers from table (Market Graph Type)	Market Graph Type: A list of graphs that the appraiser has included to support their market analysis. - Absorption Rate - Median Days on Market - Percent of Distressed Sales - Price Trend - Year Built of Sales Notes: - The actual graphs are displayed in Market Exhibits with the Market Graph Type. - Other graphs that are not in this list may be included in Market Exhibits, and a caption may be provided to identify the graph.
17.018	Price Trend Source	Always required	Free-form	The source(s) that the appraiser used to determine price trends.
17.019	Price Trend Analysis Commentary	Required if there is no Price Trend Graph, or if relevant	Free-form	Price Trend Analysis Commentary must include how price trends were determined, including reconciliation if multiple sources used.

Market Graph Type (Choose all that apply)

Allowable Answer	Definition / Additional Guidance
Absorption Rate	A graph representing the rate in which homes are sold in the defined market area using the appraiser's Lookback Period. This graph may represent Absorption Rate (Number of Settled or Pending Sales divided by Number of Months) and / or the Months of Housing Supply (Number of Listings divided by Absorption Rate).
Median Days on Market	A graph representing the median number of days properties are listed in the defined market area. A median value is defined as a value lying at the midpoint of a frequency of observed values.
Percent of Distressed Sales	A graph representing the percentage of distressed sales (e.g., foreclosure, REO, short sale) in the defined market area using the appraiser's Lookback Period.
Price Trend	A graph representing the trend of sale and / or listing prices in the defined market area using the appraiser's Lookback Period.
Year Built of Sales	A graph representing the sales trend and quantity of homes as it relates to the year the homes were constructed in the defined market area.

Housing Trends#

The appraiser must provide housing trend information for competitive properties within the defined market area (e.g., single-family to single-family, condominium to condominium).

Market: Housing Trends

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.021	Demand/Supply	Always required	Choose an answer from the Definition / Additional Guidance column	The housing supply for competitive properties in the defined market area. - Oversupply - In Balance - Shortage
17.022	Marketing Time	Always required	Choose an answer from the Definition / Additional Guidance column	The range of time needed to sell competitive properties in the defined market area. - Under 3 months - 3 to 6 months - Over 6 months

Market Commentary#

Market Commentary

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
17.023	Market Commentary	If applicable	Free-form	Commentary could include information pertinent to the Market section that is not captured in the discrete data, or additional details to support the discrete data that is provided.

Market Exhibits#

All photos or images related to the Market section are displayed in the Market Exhibits subsection. If there are no photos or images, this subsection does not display.

Market Exhibits

Report Field ID	Report Label	When to Include	Allowable Answers / Format	Definition / Additional Guidance
See iGuide	Market Exhibits	If applicable	Photos or images	Photos or images relevant to the Market section may be provided, which display in Market Exhibits. If the photo or image is not specifically indicated, provide a caption to further identify each photo or image.