3 top takeaways from the latest appraisal data
The FHFA's second quarter report found that home values increased the most in states that aren't typically thought of as hot markets.
A new report on home appraisal data provides some interesting insights into what's happening in real estate markets across the country.
Here are three takeaways from the Federal Housing Finance Agency's appraisal data for the second quarter of 2023.
Home values are up in unexpected places: The appraised value of a home has risen the most in areas not typically considered hot market states. Vermont had the highest year-over-year increase in median appraised values, jumping 5.9% in the second quarter of 2023.
Kentucky (up 5.3% year-over-year), New Mexico (up 4.8%) and West Virginia (4.7%) also topped the list.
Much of the western part of the U.S. saw appraisal values decline year-over-year, led by Idaho (down 10.5%), Nevada (down 8.1%) and Utah (down 8.1%).
Appraisal values were up across the board: After a sluggish first quarter, the market rebounded slightly in the spring, and nearly all U.S. states posted an increase in home appraisal values in Q2. Vermont again led the way, rising 12.6%. Hawaii was the only state that didn't see an increase, posting no change.
But… the number of appraisals is way down: The U.S. tallied 783,588 home appraisals (purchase and refinance) in the second quarter, a decrease of 34.3% compared to a year ago. Most homeowners have a mortgage at a lower rate than today's 7%+ levels, so it's no surprise that refinance appraisals were hit harder, posting a 48.4% drop. But purchase appraisals were also down significantly year-over-year, falling 28.4%.
Still, the number of appraisals in the second quarter represented a 21.2% increase from Q1, another indication that activity ramped up in the spring. Purchase refinance appraisals were again the driver, with refinance appraisals only rising 10.5% during that period.