CSS: 57 Percent of Appraisals Were Higher Than the Sales Price in Second Half of 2024

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How accurate was the appraisal of residential homes in the second half of 2024?

According to a report from Corporate Settlement Solutions (CSS), home appraisals were higher than sale prices 57% of the time, up from 53% in the second half of 2023.

As per the firm’s half-year Appraisal Price-Gap Analysis report, 8% of homes were under-appraised, a year-over-year decrease from 12%; and 36% were appraised at the sale price, as compared to 34% in the second half of 2023.  

The Appraisal Gap Analysis focuses on 19 states and the District of Columbia that are within the the company’s footprint, with additional highlights for the 10 states with the highest volume. 

In the second half of 2024, the average over-appraised value was 4% above sales price, unchanged from the second half of 2023; the average under-appraised value was -6%, a year-over-year decrease from -8%. 

Among the 10 states with the highest appraisal volume, Pennsylvania had the highest percentage of appraisals that were more than the sale price at 76% (with an average over-appraised value of 4%); and New Jersey had the lowest percentage of homes that were over-appraised at 38% (with an average over-appraised value of 3%). 

In the under-appraised category, Indiana had the highest percentage of appraisals that came in below the sale price at 17% (with an average under-appraised value of -6%); and Kentucky had the lowest percentage of appraisals that were less than the sale price at 5% (with an average under-appraised value of -4%). Virginia had 0% of appraisals that came in below the sale price.    

“Over the past four years, home prices have increased significantly in many markets, but recently the rate of growth has begun to slow,” says Ashley Jelinek, CEO of Corporate Settlement Solutions. “These are just two of the challenges appraisers face in the current mortgage market. We launched our Appraisal Price-Gap Analysis last year to help the market, as a whole, understand the delta between appraisals and sale prices. Accurate, market-centric valuations are key to a healthy mortgage market, so it will be interesting to see how well appraised values align with market-driven sales prices throughout 2025 as the housing market continues to find its new normal.”

Image: Agence Olloweb

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