Suncorp Valuations is excited to be attending Alberta Municipalities’ 2022 Convention & Trade Show September 21-23.
Come visit Devin Baker at booth #55 – this is a great opportunity to ask about your Municipality’s insurance or asset management!
He is very much looking forward to seeing everyone, in person, at this incredible event!
Suncorp Valuations is delighted to be attending this year’s The Alberta Condominium & Real Estate Conference in Calgary, AB from September 16-17.
Come visit Trystan Hill at booth #110 – this is a great opportunity to ask about your Insurance Appraisal and Reserve Fund Studies.
She is looking forward to seeing everyone, in person, at this amazing event!
Suncorp Valuations is delighted to be attending this year’s International ASA Conference in Tampa, FL! We are a proud Gold Sponsor of this event.
Our President and CEO, Tom Gardiner, will be attending along with some of our senior appraisal staff: Andrea Grant; Chris Parr; Joshua Abbey; Asher Cohen; and Priya Rajkondawar.
Asher Cohen and Joshua Abbey will also delivering a presentation about MTS Appraiser’s Role in completing a Purchase Price Allocation(PPA) Appraisal.
They are all looking forward to seeing everyone, in person, at this fantastic event!
Suncorp Valuations is delighted to be an exhibitor at this year’s Golden Horseshoe Annual Conference on September 16th!
This is a great opportunity to ask us about your condo insurance appraisal and learn more about what we do.
Come visit Vic Persaud and Shilpa Thakur at booth #502. They are looking forward to seeing everyone, in person, at this incredible event!
Suncorp Valuations is excited to be an exhibitor at this year’s RIMS Canada Conference 2022 from September 11-14! The RIMS Canada Conference is the second largest annual risk management conference in the world, and we are so honored to be a part of it.
Come visit Devin Baker and Vic Persaud at booth #300. We will have an incredible draw prize – enter to win a $500 Gift Card to Costco!
As well as exhibiting, Devin Baker will be part of a panel delivering a presentation, “Property Values in Volatile Economic Times”, on September 12 with Ginette Demers from Domtar and Luc Bissonnette from FM Global.
We very much look forward to seeing you all, in person, at this spectacular event!
During periods of inflation and interest rates variability, many clients ask if this will impact their appraisals. This article attempts to shed some light on these issues.
Inflation rates and interest rates are correlated. Rising inflation is typically caused by imbalances in supply and demand. Simply put, when demand of a good or service exceeds supply, prices go up. Central banks then increase interest rates to cool demand, which in time will cool inflation. Price increases slow, and then interest rates fall.
During 2021 and into 2022, inflation has been increasing significantly, mainly due to supply chain constrains causing supply of many good and services to fall significantly below demand levels. In response, in early 2022 central banks began increasing interest rates. Inflation will eventually begin to slow, but at time of writing (August 2022) it is unknown when and at what level these cycles will peak and reverse.
Generally speaking, yes, but in different ways depending on the type of appraisal (cost estimate or value estimate). Note: For more insight on the difference between cost and value, please see Suncorp Valuations recent blog on that topic.
A “Cost Estimate Report” (eg. an “insurance appraisal”) is an estimate of the cost to replace a particular asset to ensure adequate insurance coverage is in place. Changing interest rates have little effect on these types of appraisals, however inflation has a significant impact. During times of rapidly changing material and/or labour costs the appraiser must pay close attention to cost trends in a myriad of categories, sub-markets, and regions. Often these trends show significant volatility and little correlation. Expert data acquisition and analysis is essential. It is important for users of Insurance Appraisal services to communicate frequently with their Suncorp Valuations consultant to ensure costs are updated on a regular basis to reduce the risk of an insurance coverage shortfall in the event of a loss.
A “Value Appraisal” is an estimate of what a particular asset may sell or rent for. These types of appraisals are used for many purposes such as secured lending, buyer/seller due diligence, property division, etc. Inflation and cost has some impact, however interest rates have a significant impact on value estimates, for two main reasons.
Firstly, most tangible assets require some type of financing, such as a mortgage or secured loan, to facilitate the purchase. When interest rates increase, this decreases the relative purchasing power thereby reducing demand, and value. When interest rates go down, the reverse happens and values of tangible assets often increase.
And secondly, when interest rates increase the return on low risk investments (such as GIC’s, t-bills, bonds, etc.), also increase. These low risk investments compete with higher risk investments (such as income producing tangible assets and real property) for investor’s funds. Investors (buyers) then require a higher return on the purchase of tangible assets, and as a result values tend to fall. When interest rates fall, the reverse happens and values often go up.
There are many factors (such as tight supply) that impact the value of a tangible asset, and some of these factors change quite frequently. It is important for users of valuation services to communicate frequently with their Suncorp Valuations consultant to ensure their tangible asset value estimates are updated on a regular basis. In this way, our clients have the most up to date and accurate information with which to make informed decisions.