Appraisers recently contacted by McKissock tend to agree that the profession will go generally well in 2022, with no major changes to the real estate market and no events on the horizon that could seriously upset appraisers’ business. The 2022 real estate appraisal term of the year will be “standardization”—of data specifications and measurement standards. Desktop appraisals, with information provided by third-party hirelings, may increase.
Housing market trends for 2022
“While 2022 is expected to continue to be a good year for the housing market, it will not be as exceptional as 2021,” predicts Jo Traut, appraisal curriculum and content specialist at McKissock Learning. “Mortgage rates are expected to rise, but still remain attractive and reasonable. The unprecedented buyer demand of 2021 will likely be suppressed to some extent due to affordability concerns in some markets, and more housing inventory will most likely be available from both the existing homes and new construction segments.”
This market change, Traut says, is likely to lead to more manageable and constant appraisal workloads than the unparalleled extreme demand experienced over the past year.
Related reading: Check out our roundup of Housing Market Predictions for 2022.
Opportunities for appraisers in 2022
“More appraisal services will be requested for purchases than refinance transactions,” she says. “Distressed and foreclosure sale activity is likely to uptick during 2022 due to the end of the foreclosure moratorium and forbearance programs. However, various sources predict that the volume of distressed sales will be moderate in many areas, as several lenders plan to work with their borrowers. Many homes have equity available, unlike the 2008 housing collapse. Nonetheless, it would be prudent for appraisers to refresh or develop their knowledge on appraising REO properties.”
Traut notes that the Federal Housing Finance Agency (FHFA) announced in late October 2021…