What defines a typical market trend for property?

A typical market trend for property is primarily defined by changes in property prices that indicate appreciation or depreciation. This is crucial because understanding these price movements helps appraisers assess the value of a property in the current market context. Appreciation indicates that properties are increasing in value, which can lead to decisions regarding investments, buying, or selling. Conversely, depreciation signals that properties are losing value, which also greatly influences market behavior and real estate strategies.

While fluctuations in interest rates, seasonal patterns in property sales, and governmental impacts on pricing strategies can all affect the real estate market, they are secondary factors that can contribute to or result from the broader trend of price changes. Therefore, recognizing the direct relationship between property prices and market trends is essential for understanding and analyzing real estate dynamics effectively.