Overview
Real estate markets change constantly.
Prices rise, stabilize or soften depending on buyer demand, inventory levels, interest rates and economic conditions.
Time adjustments allow appraisers to compare older sales to today’s market by adjusting the sale price to reflect current conditions.
This guide explains what time adjustments are, why they matter and how appraisers apply them across the GTA and surrounding areas.
Time adjustments influence:
• Comparable selection
• Final appraised value
• Lender underwriting
• Market interpretation
• Risk analysis
• Value accuracy
When markets change quickly, time adjustments prevent outdated prices from distorting the valuation.
A time adjustment changes the sale price of an older comparable so it reflects today’s market conditions.
If the market has risen, older sales may need to be adjusted upward.
If the market has softened, older sales may need to be adjusted downward.
Time adjustments help convert historical data into current market value evidence.
When Time Adjustments Are Needed
Appraisers analyze:
• Recent market data
• MLS sale trends
• Price changes over time
• Monthly median or average shifts
• Neighbourhood specific behaviour
• Comparable sales patterns
• Micro market performance
The goal is accuracy, not speculation.
Examples of Inputs:
• If prices rose two percent per month for four months, an older sale may require an eight percent upward adjustment.
• If prices softened by one percent per month for three months, a three percent downward adjustment may be appropriate.
Adjustments must be supported by data, not assumption.
How Time Adjustments Are Applied in Practice
- Identify the Effective Date
The appraisal’s date controls all adjustments.
- Compare Comparable Sale Date vs Appraisal Date
The longer the gap, the stronger the possibility of adjustment.
- Determine Market Direction During the Gap
- Rising
• Stabilizing
• Softening
- Apply a Supported Percentage Adjustment
Appraisers calculate the market movement and adjust the sale price accordingly.
- Reconcile All Comparables Together
Time adjusted comparables must still align with the overall market narrative.
• They do not “boost value.”
• They do not guarantee higher results.
• They do not override weak comparables.
• They do not replace proper market evidence.
• They do not apply to distressed or atypical sales.
The purpose is accuracy, not inflation.
“Older sales cannot be used.”
They can, as long as time adjustments align them with current conditions.
“Time adjustments always increase value.”
Adjustments can be upward or downward.
“Appraisers guess the adjustment.”
Adjustments must be grounded in market data.
“If one sale is time adjusted upward, all should be.”
Not always. Different comparables may experience different pricing patterns.
How old can a comparable be?
If properly adjusted, even one year old sales can be relevant.
Do lenders accept time adjusted comparables?
Yes, as long as the adjustment is well supported.
Do time adjustments apply to all sales?
Only when market conditions have changed between the sale date and the appraisal date.
Can time adjustments be large?
In volatile markets, yes, but they must be fully defensible.
If you want a clear explanation of how time adjustments may influence your appraisal, our valuation team can walk you through recent trends and market behaviour in your neighbourhood.
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