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About time.

Seventy-one percent of residential appraisers say they complete 10 or more appraisal assignments each month, with the majority saying it takes at least four days for each one, according to the 2018 Voice of the Appraiser report released Oct. 22 by October Research. Appraisers say the turnaround time has not shortened during the past year.
Number of appraisals
completed each month

1 to 3        9.4%
4 to 5        5.7%
6 to 7        5.9%
8 to 9        8.0%
10 or more   71.0%

Average residential
appraisal turnaround

Same day         0.1%
1 day            3.7%
2 to 3 days      33.5%
4 or more days   62.7%

Economic Indicators | PwC Real Estate Investor Survey, Q4 2018

                    Regional Mall             CBD Office

                Q4 2018      Q3 2018      Q4 2018     Q3 2018

Discount Rate (IRR) (a)

Range(%)       5.00-11.00   5.00-11.50   5.25-9.00   5.25-9.00
Average (%)       7.33         7.55        6.89        6.89
Change (bps)                   -22                       0

Overall Cap Rate (OAR) (a)

Range (%)      4.00-9.00    4.00-10.00   3.00-7.50   3.00-7.50
Average (%)       6.23         6.30        5.44        5.44
Change (bps)                    -7                       0

Residual Cap Rate

Range(%)       4.25-10.00   4.25-10.00   4.50-8.50   4.50-8.50
Average (%)       6.58         6.80        6.02        6.11
Change (bps)                   -22                      -9

                     Warehouse               Apartment

                Q4 2018     Q3 2018     Q4 2018      Q3 2018

Discount Rate (IRR) (a)

Range(%)       5.25-9.00   5.25-9.00   5.25-10.00   5.25-10.00
Average (%)      6.33        6.38         7.15         7.20
Change (bps)                  -5                        -5

Overall Cap Rate (OAR) (a)

Range (%)      1.00-6.50   1.50-6.25   3.50-8.50    3.50-8.50
Average (%)      4.56        4.62         5.16         5.23
Change (bps)                  -6                        -7

Residual Cap Rate

Range(%)       4.50-6.75   4.50-7.25   4.00-8.50    4.00-8.50
Average (%)      5.51        5.64         5.53         5.57
Change (bps)                  -13                       -4

(a) Rate on unleveraged, all-cash transactions.
Definitions: bps--basis points. Discount Rate (IRR)--internal
rate of return in an all-cash transaction, based on annual
year-end compounding. Overall Cap Rate (OAR)--initial rate
of return in an all-cash transaction. Residual Cap Rate--overall
capitalization rate used in calculation of residual price;
typically applied to the NOI in the year following the forecast.
Survey involves institutional-grade properties.
Source: PwC Real Estate Investor Survey; Personal survey
conducted by PwC during October 2018. For subscription
information, please email us-pwcsurvey@pwc.com.

Conventional home mortgage terms, US averages

New homes

                     Dec 2018   Jun 2018   Dec 2017

Interest rate (%)      4.84       4.58       4.09
Term (years)           28.9       29.1       28.6
Loan ratio (%)         78.5       78.7       79.0
Price ($ thousand)    419.8      439.3      420.4

Existing homes

                     Dec 2018   Jun 2018   Dec 2017

Interest rate (%)      4.99       4.74       3.90
Term (years)           28.6       28.6       28.8
Loan ratio (%)         79.1       78.4       78.3
Price ($ thousand)    388.4       385       471.1

New homes

                     Jun 2017   Dec 2016   Dec 2015

Interest rate (%)      4.03       3.78       4.14
Term (years)           28.9       28.8       28.8
Loan ratio (%)         77.9       78.5       78.9
Price ($ thousand)    463.5      463.3      437.3

Existing homes

                     Jun 2017   Dec 2016   Dec 2015

Interest rate (%)      4.00       4.00       4.14
Term (years)           28.7       28.4       28.1
Loan ratio (%)         79.5       79.5       77.4
Price ($ thousand)    406.8      394.3      407.2

> For continuously updated economic indicators, visit
www.appraisalinstitute.org/news/market-data (login required).

Economic Indicators | Market rates, bond yields and other
benchmarks

Market rates and bond yields

                                 Dec 2018   Jun 2018   Dec 2017

Reserve bank discount rate         3.00       2.50       1.90
Prime rate (monthly average)       5.50       5.00       4.40
Federal funds rate                 2.40       1.92       1.30
3-month Treasury bills             3.39       1.90       1.32
6-month Treasury bills             2.47       2.09       1.47
LIBOR 3-month rate                  --         --        1.69
U.S. 5-year bond                   2.67       2.80       2.18
U.S. 10-year bond                  2.81       2.93       2.40
U.S. 30-year bond                  3.06       3.06       2.77
Municipal tax exempts (Aaa) *      2.91       3.22       2.91
Municipal tax exempts (A) *        3.41       3.72       3.41
Corporate bonds (Aaa) *            4.02       3.96       3.51
Corporate bonds (A) *              4.37       4.29       3.79
Corporate bonds (Baa) *            5.13       4.83       4.22

Stock dividend yields

                                 Dec 2018   Jun 2018   Dec 2017

Common stocks--500                  --         --         --

Industrial Production Index ([dagger], [double dagger])

                                 Dec 2018   Jun 2018   Dec 2017

                                   78.7       77.8       77.3

Unemployment rate (%) ([double dagger])

                                 Dec 2018   Jun 2018   Dec 2017

                                   3.9        4.0        4.1

Consumer Price Index

                                 Dec 2018   Jun 2018   Dec 2017

                                  251.2      251.9      246.5

Market rates and bond yields

                                 Jun 2017   Dec 2016   Dec 2015

Reserve bank discount rate         1.75       1.25       0.87
Prime rate (monthly average)       4.25       3.75       3.37
Federal funds rate                 1.16       0.55       0.24
3-month Treasury bills             1.03       0.50       0.23
6-month Treasury bills             1.13       0.61       0.49
LIBOR 3-month rate                 1.30       0.99       0.62
U.S. 5-year bond                   1.92       1.93       1.70
U.S. 10-year bond                  2.33       2.45       2.04
U.S. 30-year bond                  2.85       3.06       2.97
Municipal tax exempts (Aaa) *      2.95       3.47       3.02
Municipal tax exempts (A) *        3.50       4.05       3.60
Corporate bonds (Aaa) *            3.68       4.06       4.03
Corporate bonds (A) *              3.93       4.28       4.38
Corporate bonds (Baa) *            4.37       4.83       5.48

Stock dividend yields

                                 Jun 2017   Dec 2016   Dec 2015

Common stocks--500                2.01       2.08       2.16

Industrial Production Index ([dagger], [double dagger])

                                 Jun2017    Dec 2016   Dec 2015

                                   76.2       75.7       75.7

Unemployment rate (%) ([double dagger])

                                 Jun 2017   Dec 2016   Dec 2015

                                   4.4        4.7        5.0

Consumer Price Index

                                 Jun2017    Dec 2016   Dec 2015

                                  244.9      241.4      234.8

Abbreviation: LIBOR--London Interbank Offered Rate.

* Source: Moody's Bond Record.

([dagger]) On June 25, 2010, the Federal Reserve Board
advanced to 2007 the base year for the indexes of industrial
production, capacity and electric power use. This follows
the Nov. 7,2005, change to a 2002 baseline, from the
previous 1997 baseline. Historical data has also
been updated.

([double dagger]) Seasonally adjusted.

Economic Indicators | Conventional home mortgage
rates by metropolitan area

                                    Q4 2018   Q4 2017

Atlanta                              4.87      4.20
Boston-Lawrence-NH-ME-CT *           4.72      3.78
Chicago-Gary-IN-WI *                 4.93      4.03
Cleveland-Akron *                    4.84      3.80
Dallas-Fort Worth *                  4.96      4.16
Denver-Boulder-Greeley *             4.87      4.04
Detroit-Ann Arbor-Flint *             5.0      4.23
Houston-Galveston-Brazoria *         4.94      4.08
Indianapolis                         4.97      4.09
Kansas City, MO-KS                   5.03      4.41
Los Angeles-Riverside *              4.83      4.19
Miami-Fort Lauderdale *              5.06      4.18
Milwaukee-Racine *                   5.05      4.21
Minneapolis-St. Paul-WI              4.93      4.11
New York-Long Island-N. NJ-CT *      4.68      3.95
Philadelphia-Wilmington-NJ           4.80      3.81
Phoenix-Mesa                         5.07      4.26
Pittsburgh                           4.72      3.55
Portland-Salem *                     4.88      4.09
St. Louis-IL                         4.81      4.06
San Diego                            4.49      3.84
San Francisco-Oakland-San Jose *     4.45      3.93
Seattle-Tacoma-Bremerton             4.75      4.01
Tampa-St. Petersburg-Clearwater      4.96      4.11
Washington, DC-Baltimore-VA *        4.79      3.95

                                    Q4 2016   Q4 2015

Atlanta                              3.68      3.93
Boston-Lawrence-NH-ME-CT *           3.52      3.80
Chicago-Gary-IN-WI *                 3.73      4.08
Cleveland-Akron *                    3.69      4.16
Dallas-Fort Worth *                  3.64      3.94
Denver-Boulder-Greeley *             3.69      4.02
Detroit-Ann Arbor-Flint *            3.66      3.95
Houston-Galveston-Brazoria *         3.58      3.90
Indianapolis                         3.75      4.09
Kansas City, MO-KS                   3.64      4.13
Los Angeles-Riverside *              3.76      4.05
Miami-Fort Lauderdale *              3.77      4.08
Milwaukee-Racine *                   3.74      4.14
Minneapolis-St. Paul-WI              3.66      4.11
New York-Long Island-N. NJ-CT *      3.60      3.88
Philadelphia-Wilmington-NJ           3.72      4.12
Phoenix-Mesa                         3.78      4.08

Pittsburgh                           3.69      4.15
Portland-Salem *                     3.57      3.88
St. Louis-IL                         3.57      3.96
San Diego                            3.61      3.82
San Francisco-Oakland-San Jose *     3.54      3.74
Seattle-Tacoma-Bremerton             3.56      3.84
Tampa-St. Petersburg-Clearwater      3.81      4.23
Washington, DC-Baltimore-VA *        3.76      4.08

* Consolidated Metropolitan Statistical Area.

Highest and lowest rates, Q4 2018

Lowest

San Francisco-Oakland-San Jose     4.45

Highest

Phoenix-Mesa                       5.07
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Title Annotation:The News in Numbers
Publication:Valuation Magazine
Date:Jan 1, 2019
Words:1381
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