How did the 2008 economic crisis affect property valuation?

The 2008 economic crisis significantly impacted property valuation, primarily by introducing increased risk and leading to devaluation of properties. During the crisis, widespread foreclosures and a collapse in housing demand resulted in a dramatic decline in property values. Financial institutions faced uncertainty and tightened lending standards, which further slowed the market. As properties lost value, appraisers and investors reassessed risk, leading to adjustments in how properties were valued across various sectors, not limited to just residential but also commercial properties. This period underscored the interconnectedness of economic factors and real estate valuations, as economic instability typically leads to revised expectations for property worth and investment security. The crisis exemplified how macroeconomic conditions directly affect individual property assessments and the broader market.