When local comparables are scarce, which data may be used to supplement the sales comparison analysis?

• A. Global stock indices
• B. Local weather data
• C. National political events
• D. Regional market data to examine broader trends

Answer: (D)

When there aren’t enough nearby sales to compare directly, you look to broader market indicators to understand the current conditions affecting values. Regional market data helps you see broader trends in demand, supply, and price movement that are likely to influence the subject property, even if there aren’t many local sales to pull from.

Regional data can include things like price trends, median or average prices, days on market, inventory levels, absorption rates, and recent sales activity in markets that are similar in character to the subject. This information provides context about how the market is behaving beyond a single neighborhood, helping you adjust for conditions that could impact value.

Global stock indices, while informative about financial markets, don’t directly reflect real estate market conditions. Local weather data isn’t a reliable indicator of housing value trends. National political events are too broad and not consistently linked to specific market dynamics needed for appraisal. The regional market data, when aligned with the subject’s market segment and time frame, offers the most relevant context for supplementing the sales comparison analysis.