I recently saw a fourplex in Vancouver. It is an older building offering some of the smaller units on the market. It serves a purpose for those with limited income and/or want a small space to live in. It sold about a year ago for about $330,000 to $340,000. It was conventionally financed. I appraised it this week for $265,000. The market data was scattered, but all pointed to an obvious value range. I wouldn’t say the market has declined 25% in the last year. But, it does look like some appraiser had his or her nose pushed hard into the wind when they did the appraisal to support the financing a year ago. The property is in foreclosure. The days on market are in the 200 to 300 range these days close in S.E. Prices don’t seem to be dropping yet. But, as the marketing times expand prices will have to drop or remain stable for some time until the market warms back up. During 2005 the average days on the market for fourplexes close in S.E. was 60. For 2006 it was 42. In 2007 it is 251. And, financing is getting more difficult. Rental rates have risen much slower than prices have risen making it very difficult for a property to carry its own weight, even after taxes.

Ralph Olsen, Appraiser PWAS.NET

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