OTTAWA, ON, June 12, 2020 /CNW/ - As the COVID-19 pandemic continues to impact society, many housing experts, economists, think tanks and government agencies have weighed in on the impact it has had or will have on real estate values. These predictions have varied from little to no impact to significant impact – some forecasting reductions as much as 18%.
AIC Designated Appraisers are trained and experienced professionals who maintain the highest level of competency within an evolving marketplace. They provide unbiased appraisal, review, consulting, reserve fund study and other services on all types of properties within their areas of competence and according to specific methodologies as defined under the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP). AIC Designated Members are active in all markets across the country - their local market knowledge helps to provide "real time values" with up to date and on the ground insights to inform decision making.
With the understanding that housing markets are inherently local and with supply and demand being one of the key drivers of asking and selling prices at any given time, the AIC undertook a survey of its Members to obtain an understanding of how values might have changed at this point of the pandemic.
During the period of May 8-18, 2020, AIC surveyed 470 of its members regarding the impact of the COVID-19 pandemic on their practice and on market values. While respondents witnessed value changes anywhere between +25% to -25%, the average was only 1.9%.
AIC President Jan Wicherek: "Appraisers, like all Canadians, have had to modify their behaviour and practices in order to maintain physical and social distancing guidelines and to continue to provide high-quality, professional services that allow for anyone relying on an appraisal to obtain "real time" information on their local market to guide their decisions, whether it's to sell, buy, refinance, renovate, expand, for lending purposes, acquire or dispose of real estate assets, assess capital gains, valuating property for matrimonial purposes, and more."
One of the core elements of a healthy and balanced real estate market is a systemic approach and commitment to reliable property valuations. Unbiased and independent real estate appraisals are a critical component of sound lending practices as on-site appraisals carried out by qualified professionals are the most effective way to help mitigate lending and property investment risk. Appraisals help to ensure that properties are not overvalued, as well as helping to detect and prevent fraud or other issues involving real property. When conducted by a qualified and experienced professional, an appraisal will validate the characteristics of the property, analyze the current market conditions, and take into consideration the surrounding neighbourhood and other factors. This is always important, but particularly crucial during these uncertain and unpredictable times.
AIC CEO Keith Lancastle: "It is worth noting and remembering that strong valuation fundamentals helped Canada's economy remain strong during the global financial crisis at a time when many of the world's leading economies faltered. Members of the AIC helped to maintain those fundamentals by contributing their real estate expertise and knowledge to the lending industry and providing sound valuation advice to clients and key stakeholders. This is as important as ever as we continue to navigate through the COVID-19 public health crisis."
ABOUT AIC
The Appraisal Institute of Canada (AIC) is a leading real property valuation association with over 5,400 members across Canada and around the world. Established in 1938, AIC works collaboratively with its 10 provincial affiliated associations to grant the distinguished Accredited Appraiser Canadian Institute (AACI™) and Canadian Residential Appraiser (CRA™) designations. AIC designated members must abide by Regulations and standards of professional practice known as the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) and a Code of Conduct to ensure the integrity of the profession and the protection of public interest. AIC Designated Members are highly qualified, respected professionals who undertake comprehensive curriculum, experience and examination requirements. They are committed to continuing professional development to maintain the highest level of competency within the evolving marketplace. Our members provide unbiased appraisal, review, consulting, reserve fund studies and other services on all types of properties within their areas of competence defined under CUSPAP.
For more information, go to www.AICanada.ca.
SOURCE Appraisal Institute of Canada
MEDIA CONTACT, Paul Hébert, Director - Communications, Appraisal Institute of Canada, 403-200 Catherine Street, Ottawa, Ontario K2P 2K9, PH: 613.292.2876, E-mail: [email protected], www.aicanada.ca
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