Appraisers not sure if good times will last

While there’s more demand for their services today, real estate appraisers are “cautiously optimistic” that demand will remain strong for the next year or two, according to a survey by the Appraisal Institute, the nation’s largest association of appraisers.

The survey found 95 percent of residential appraisers said there is more demand for their services than there was a year ago. But only 32 percent expect there will be more demand for their services in a year or two than there is now.

Like mortgage originators, appraisers are likely to see a decline in business as rising mortgage rates put the brakes on the refinancing boom.

In a June 20 forecast, the Mortgage Bankers Association predicted that mortgage originations will plummet by 30.6 percent from this year to next, to $1.09 trillion. While the MBA expects refinancings to drop by 60.1 percent, to $388 billion, the good news for Realtors is that purchase loan originations are projected to rise by 17.2 percent, to $703 billion.

Source: appraisalinstitute.org.