Cleveland-based Corporate Settlement Solutions (CSS) released an analysis Thursday that highlights a growing gap between appraised home values and sale prices. Across the 19 East Coast and Midwest states in which CSS operates, appraisals were higher than sale prices in 57% of transactions during the second half of 2024.
According to the most recent data from the S&P CoreLogic Case-Shiller Home Price Index, U.S. home prices rose by 3.6% year over year in October 2024. That's down from a three-year average growth rate of 5.8% and a five-year average growth rate of 8.9%.
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.
Under-appraisals are relatively rare and can upend a real estate transaction if the buyer and seller need to renegotiate the sale price, or the buyer needs to come up with additional funds.
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