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Posted by on Dec 10, 2017 in Jim's Take on the Market, Sales and Price Check | 4 comments | Print Print

Appraisers’ Opinion of Appreciation

Appraisers in Southern California get together and evaluate the same 300 homes every six months – here’s how their values compare to those of CoreLogic (San Diego has the closest gap):

LINK

An excerpt:

Elsewhere in the region, here’s how the battle-of-the-index gaps shaped up since 2012 …

Los Angeles County: Appraisers say up 58 percent; CoreLogic says 72 percent.

Orange County: Appraisers say up 44 percent; CoreLogic says 55 percent.

San Diego County: Appraisers say up 50 percent; CoreLogic says 56 percent.

Ventura County: Appraisers say up 45 percent; CoreLogic says 53 percent.

Now, these gaps may partially be a reflection of the often-bemoaned shortage of “affordable” homes to buy.

Southern California’s painfully thin supply of homes at the lower-end of the price spectrum has distorted indexes like CoreLogic’s median. These metrics end up reflecting a buyer’s willingness to pay up for the higher-priced housing that’s on the market. This statistical pattern doesn’t mean all home values are up at the median’s skyward pace.

Yes, it’s not totally shocking these appreciation gaps — man-vs.-machine — exist in the first place. Remember, appraisers get paid to be real estate’s party poopers — protecting overzealous lenders from overlending on overvalued properties.

So by nature, appraisers are … let’s say … skimpy! Still, their cautious viewpoint can’t be easily ignored, since they often have the power to kill a prospective home purchase with a low valuation.

Plus, the collective wisdom of appraisers is especially noteworthy as Southern California’s eye-catching home-price gains continue.

LINK

4 Comments

  1. In 2012 SoCal appraisers were survivors and beyond cautious. The entire gap can be explained by skittish opinions five years ago.




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  2. Imagine the horror of having taken out a mortgage denominated in BTC.




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