Feb. 1, 2023 (Staff Writer) — The “The US Real Estate Appraisal Market: Analysis and Trends with Impact of COVID-19 and Forecast up to 2028” report has been added to ResearchAndMarkets.com’s offering.
The US real estate appraisal market was valued at US$8.89 billion in 2022 and is expected to be worth US$11.41 billion by 2028.
The US real estate appraisal market is a vital component of the US real estate industry, providing important information to a wide range of stakeholders, including buyers, sellers, lenders, investors, and government agencies. The market is primarily composed of independent appraisal firms and individual appraisers, who are licensed and regulated at the state level.
In recent years, the real estate appraisal market has seen major changes as technology has become increasingly crucial in the appraisal process.
Today, a lot of appraisers gather and evaluate information about properties using digital tools like aerial imaging, 3D modeling, and data analytics, which enables them to finish valuations more rapidly and precisely. The market is expected to grow at a CAGR of 4.24% over the projected period of 2023-2028.
Market Dynamics:
- Growth Drivers: One of the key drivers of the market’s expansion is the growth in the housing market. Despite high selling prices and low home inventory, the sales of new houses in the US increased in 2021. As the housing market grows, more people are buying and selling homes, which increases the demand for appraisals. Appraisals are needed to determine the value of a home for transactions such as mortgages, refinancing, and property sales. This increase in housing sales has given hope to the US real-estate appraisal market as people would go for the services of the appraisers before proceeding any purchase activity to ensure the true price of the house. Rising housing market is expected to continue in coming years and drive the real-estate appraisal market. Other significant growth factors of the market include technology penetration in the appraisal industry, growing addressable mortgage originations, improvement in communication between parties, automation of data-gathering and increasing adoption of remote online notarization and digital real estate transactions.
- Challenges: Some challenges are impeding the growth of the market such as less appealing mortgage appraisal business, restricted demand for appraisers based on the region, availability of alternative processes, quality control issues, regulatory and audit compliance, and shrinking supply of appraisers. The appraisal industry is aging. There are more appraisers leaving the industry than joining the industry. This is because the process to become an appraiser is arduous and comes with little pay. Individuals need to get licensed as an appraiser trainee and have a certified appraiser with them. Then, they need to have about a year and a half of training hours as an apprentice before becoming a certified appraiser.
- Trends: The market is projected to grow at a fast pace during the forecast period, due to growing senior housing momentum, fragmented mortgage lenders market, improvement in logistical management of appraisers, changes to licensing requirements, and availability of on-site and report creation workflows. Logistical management of appraisers is mainly handled by AMCs in the appraisal process, but certainly some are better than others and have invested heavily in solutions that improve the order management, appraisal scheduling, and route efficiency solutions. For example, Solidifi (The US Real Matters brand) has invested significantly to build out its capabilities in network management. Specifically, the company can monitor the efficiency of appraisers in real time (turnaround time and defect rates) and route more work to highly rated appraisers depending on their current capacity. Thus, the improvement in logistical management of appraisers overall improves the appraisal process which in turn positively affects the industry.
- Competitive Landscape:
The US real estate appraisal market is very fragmented. The market is likely to be led by large national firms, but there are also many smaller regional and local firms, as well as independent appraisers, that compete within specific markets or regions. Companies and appraisers need to have a strong reputation for accurate and reliable valuations, as well as a good understanding of the local real estate market and the ability to adapt to changing market conditions. Additionally, companies that can offer additional services, such as technology solutions or data and analytics, may have an advantage over competitors who only offer traditional appraisal services.
The key players in the US real estate appraisal market are:
- Real Matters, Inc.
- Wells Fargo & Company
- JP Morgan Chase & Co.
- CBRE Group
- Voxtur Analytics Corp
- BGC Partners, Inc.
- CoreLogic, Inc.
- The Accurate Group
- Clear Capital
- ServiceLink
- LRES Corporation
- First Look Appraisals
For more information about this report visit https://www.researchandmarkets.com/r/g9fx4y-us-real?w=5
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