Business is slow for appraisers, but just how slow? There is an interesting article in the new edition of WorkingRE magazine that discusses appraisal volume and trends.
“The American Enterprise Institute (AEI) publishes data tracking the mortgage and appraisal production numbers of both Fannie Mae and Freddie Mac (the GSEs) going back to 2013. AEI’s data shows that GSE appraisal volume is at the lowest point since they started tracking it.
In February 2023, the total GSE valuations dipped to just 111,000 for the entire month, with appraisal waivers and property data collections making up 14,000 of those “valuations.” This left appraisers with just 97,000 appraisals from the GSEs. According to Freddie Mac’s “Appraiser Capacity” report, just over 30,000 appraisers were active on UCDP in February. The simple math works out to roughly 3.2 appraisals per appraiser—for those appraisers still working for the GSEs.
Of course, AEI’s data doesn’t capture the entire appraisal landscape. The Department of Veteran Affairs (VA), the Federal Housing Administration (FHA), private lender appraisal work, direct lender appraisals, and commercial appraisals all exist outside the GSE’s domain. Nevertheless, the GSEs handle over 60 percent of all mortgage transactions—meaning that the data is largely representative of the market as a whole.”
The graph below shows the GSE appraisal volume trending from July 2021 through July 2023.
You can read the full article here.
Recent Comments