The coefficient of variation (COV) is used to measure what aspect in appraisal?

The coefficient of variation (COV) is primarily used to measure the dispersion of a set of values relative to their mean. In the context of property appraisal, this metric quantifies the extent to which property values fluctuate within a given data set, allowing for a better understanding of the variability of values in comparison to their average.

A lower COV indicates that property values are more closely clustered around the mean, suggesting greater stability in the market, while a higher COV suggests a wider range of property values indicating more volatility. This tool is particularly valuable for assessors who are comparing property values across different areas or property types, as it provides insights into market behavior and price variations.

By focusing on the dispersion of property values, the COV enables appraisers to make more informed decisions regarding valuations and assess market trends effectively.