U.S. Home Appraisals Slide YoY in Q3

The number of U.S. home appraisals declined between the third quarters of 2022 and 2023, as well as between the second and third quarters of 2023, according to the Federal Housing Finance Agency’s (FHFA) Uniform Appraisal Dataset Aggregate Statistics for Q3 of 2023.

For purchase appraisals, the median appraised value remained unchanged from Q3 of 2022 to Q3 of 2023, while decreasing from Q2 of 2023 to Q3 of 2023. For refinance appraisals, the median appraised value increased between the third quarters of 2022 and 2023, as well as between the second and third quarters of 2023.

In Q3 of 2023, as compared to the year-earlier period, the number of appraisals decreased by 19.9% for purchase and refinance loans combined, 16.8% for purchase loans only, and 28.3% for refi loans only. The median appraised value remained unchanged for purchase loans while it rose 1.9% for refinance loans.

Between Q2 of 2023 and Q3 of 2023, the number of appraisals decreased by 9.6% for purchase and refinance loans combined, 10.7% for purchase loans only, and 5.8% for refinance loans only. The median appraised value decreased 1.3% for purchase loans, and increased 1.6% for refinance loans.

Figure 1 (above) depicts the year-over-year percent change in median appraised value for purchase loans for each state and Washington, D.C. The largest declines occurred in the states of:

• Nevada
• Washington, D.C.
• Utah
• Idaho
• Arizona

Thirty-four states witnessed increases, with the largest gains in Vermont, New Jersey, Maine, and New Hampshire.

Figure 2 (above) depicts the year-over-year percent change in median appraised value for refinance loans for each state and Washington, D.C. Declines were observed in:

• Texas
• Arizona
• Utah
• Colorado
• Nevada
• Oregon
• Washington, D.C.

Forty-four states experienced increases in median appraised values, with the largest increases in Vermont, South Dakota, Wyoming, and Iowa.

Figure 3 (above) depicts the quarter-over-quarter percent change in median appraised value for purchase loans for each state and Washington, D.C. Thirty-four states witnessed declines, the largest of which were observed in:

• New York
• Illinois
• Kansas
• Montana

Conversely, the median appraised value rose in 12 states and Washington, D.C. Hawaii, New Mexico, and Rhode Island recorded the largest increases.

Figure 4 (above) depicts the quarter-over-quarter percent change in median appraised value for refinance loans for each state and Washington, D.C. Fourteen states had declines in median appraised value, with the largest decreases reported in:

• Wyoming
• Kansas,
• Delaware
• New York

Thirty-four states had increases in median appraised value, with the greatest increases in West Virginia, Arkansas, and Hawaii.

The FHFA 2023Q3 UAD Aggregate Statistics show that the number of appraisals declined over the last year and the last quarter, while the median appraised value was unchanged from last year and declined slightly over the quarter for purchase loans. The median appraised value for refinance appraisals rose over the last year and quarter.

Most states reported declines in median appraised value for purchase loans between Q2 of 2023 and Q3 of 2023. Most of the largest year-over-year declines in median appraised value for purchase loans occurred in western states, while the majority of the largest quarter-over-quarter declines occurred in southern and eastern states. For refinance loans, the largest declines in year-over-year median appraised value were generally concentrated in western states, while quarter-over-quarter declines were more dispersed across the country. These patterns could be further explored with the UAD Aggregate Statistics and other FHFA data.

In March of 2023, the Biden Administration made a commitment to ensuring that every American who buys a home has the same opportunities to build generational wealth through homeownership. The Biden Administration’s Interagency Task Force on Property Appraisal and Valuation Equity (PAVE)–led by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge and White House Domestic Policy Advisor Ambassador Susan Rice–released the PAVE Action Plan, a plan to advance equity in the home appraisal process.

PAVE seeks to:

• Empower consumers to act against appraisal bias.
• Increase transparency and leverage federal data to inform policy and improve enforcement against appraisal bias.
• Cultivate an appraiser profession that is well-trained, and looks like the communities it serves.

The FHFA has published the UAD Aggregate Statistics, the first publicly available data providing insights on U.S. home appraisals, on a quarterly basis since October 2022.

Click here for a National, State, and Metro breakdown of UAD Aggregate Statistics from Q3 of 2023.