Short-Term Market Trends

PVX is most readily applied for properties in stabilized markets, for which conditions are only expected to follow a consistent trend for at least the next 10 years. Short-term trends are sometimes very different, though, and may need to be accommodated in the fractional interest analysis. Short-term trends might not matter too much if they are expected to stabilize during the period that the owners are expected to continue to hold the property. But, if the restriction period for the subject interest is short (see Restriction Risk – Time), then the exact short-term trend will have to be considered. Read more here. Partition analysis is particularly sensitive to short-term trends because it is always short-term. PVX provides for a separately-entered growth rate to accommodate any difference between short- and long-term (see Partition Properties, Value Growth).