Real Estate Industry Forecast: What does 2022 have in store for appraisers?
2021 brought a wave of record-breaking activity in the real estate industry. Housing prices rose significantly and we also saw a surge in new home-buyers, making demand higher than it has been in years.
Did you know that the average home price in Canada in November 2021 was approximately $720,000, which is 19.6% higher than it was in November 2020? In the United States, the median home price in 2021 went up 16.9%, which is the biggest increase recorded since 1999, according to the National Association of Realtors (NAR). These kinds of figures won’t be quite as common in 2022 based on the predictions of many industry experts.
Let’s take a look at the forecast for the real estate industry this year; specifically how it pertains to residential and commercial appraisers.
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An article on the Redfin News website discusses the likelihood that “mortgage rates will rise to 3.6%, bringing price growth down to earth.” Zillow also predicts that the real estate industry will calm down slightly compared to the historic numbers we saw in 2021, however there will still be a great deal of activity to keep everyone in the industry busy, including appraisers.
Going into 2022 sellers continue to have the upper-hand which means there are still plenty of prospective home-buyers to keep the industry busy. This means appraisers aren’t going to be getting a break anytime soon; things have been crazier than ever for appraisers in the last 12 months, and it’s likely going to continue on the same path for the foreseeable future. If they haven’t done so already, appraisers should be preparing themselves with the resources they need to provide high quality reports in a timely manner; the heavy activity in 2021 is here to stay.
An article on the CBS News website lists the top housing markets projected to receive the most activity and growth in 2022:
- Salt Lake City, Utah
- Boise City, Idaho
- Spokane-Spokane Valley, Washington
- Indianapolis-Carmel-Anderson, Indiana
- Columbus, Ohio
- Providence-Warwick, Rhode Island-Massachusetts
- Greenville-Anderson-Mauldin, South Carolina
- Seattle-Tacoma-Bellevue, Washington
- Worcester, Mass.-Connecticut
- Tampa-St. Petersburg-Clearwater, Florida
Appraisers in these cities can expect changes compared to activity in past years, as the CBS forecast predicts, smaller cities will take precedence over larger cities such as New York and Los Angeles in terms of price increases.
There are also a number of trends that have appeared in the last couple of years that will continue to be the norm going forward. For example, more remote work. The world has seen huge changes in how we work and communicate thanks to the pandemic and those safety precautions likely won’t disappear anytime soon. Appraisers can expect more drive-by and desktop appraisals to continue throughout 2022 as traditional inspections take a backseat.
Another trend that won’t go away in 2022 is the push for appraisers to explore technology as a way to grow their business. Many markets and services have modernized significantly in recent years to accommodate the growing expectations of consumers and as a way to keep up with increasing demand, and appraisers are no exception. Appraisers are being pushed now more than ever to modernize their processes and leverage technology in order to achieve faster turn times.
If you’re a real estate appraiser looking to modernize your business in preparation for another busy year, book a 1-on-1 demo to see what Anow can do for you.
- McKissock Learning: https://mckissock.com/blog/appraisal/housing-market-predictions-for-2022-and-other-appraisal-news/
- Redfin News: https://www.redfin.com/news/housing-market-predictions-2022/
- WOWA: https://wowa.ca/reports/canada-housing-market
- Zillow: https://www.zillow.com/research/zillow-2022-housing-predictions-30394/
- CBS News: https://www.cbsnews.com/news/10-top-housing-markets-of-2022-think-boise-not-new-york-city/
- CNN Business: https://www.cnn.com/2022/01/20/homes/us-nar-home-sales-december-and-2021/index.html