Property Valuation

A Minnesota appraiser is completing a market conditions analysis for their appraisal report. This analysis examines:

AThe appraiser's personal market opinion
BSupply and demand factors affecting property values in the subject's market area✓ Correct
COnly the national housing market trends
DThe subject property's specific transaction history

Explanation

Market conditions analysis examines supply and demand factors: inventory levels, days on market, list-to-sale price ratios, absorption rates, price trends, and other metrics that affect property values in the subject's market area. This analysis is required in appraisals under USPAP and guides the selection and adjustment of comparable sales.

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