Markets & EconomyRegulations

How bad could the appraiser shortage get, and what are the solutions?

Rising mortgage interest rates might cause short-term relief, but this problem is not going away anytime soon
  • The National Association of Realtors found in its Appraisal Trends Study that retiring appraisers and a dearth of new industry entrants could cause the appraiser shortage to get even worse.
  • It said in a blog post that a combination of automation and training solutions are needed to combat the shortage.

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If you slept through all of 2016, then you might have missed the news that there weren't enough appraisers last year for the properties that needed appraising. Between falling interest rates (and subsequent refinancing by homeowners) and a mostly-recovered housing market, appraisers were in hot demand and appraisals could take weeks to line up -- in some parts of the country, appraisers were even able to charge a premium for timely work. Now that mortgage rates are closer to 4 percent than 3 percent -- and now that we're a year further along in developing technology that could help with the intricacies of appraisal -- do industry experts expect the shortage to continue, and just how bad do they think it could get? The National Association of Realtors (NAR) released the Appraiser Trends Study in March of this year, and this week, NAR's director of regional economics and housing finance, Ken Fears, wrote a blog post outlining how retiring appraisers could impact the shortage and...