Fall 2022 Market Recap

28 Oct Fall 2022 Market Recap

Since my last official blog post, the market has dramatically changed in 2022 as we all know. Rather than recap the 2022 real estate news that is consuming us daily, I wanted to send a quick update of my observations based on my work flow.

Lender Work:

First, obviously with mortgage rates rising so abruptly, the lender side of work has declined significantly. Most homeowners wanting to tap into their home equity but are locked into low mortgage rates are shifting to home equity lines of credit over refinancing. My demand for home equity appraisals has increased substantially this year.  

Second, on the purchase side of appraisals, I am observing buyers and sellers shifting expectations. The data in most market areas are generally showing some percentage of decline compared to peak prices. It is very important to pay attention to the segmented market to really identify specific trends. Most real estate news is local/regional/national and may be skewed compared to one’s specific market. I’ve observed sellers reducing list price quicker and willing to negotiate terms. Buyers are using their new position of leverage for negotiating price, terms, credits etc. after years of multiple bid situations.  

Third, I am observing default/pre foreclosure work creeping back into the market again. Over the past 3 months or so, I’ve completed a handful of these assignments. This will be something to watch and pay attention to as we enter 2023.

Summarizing, while simplistic, I’ve emphasized for years that mortgage rates are the engine that drive the market. Going from historically low mortgage rates to rates now hovering at the 7% range is a very steep increase resulting in a quick shifting market.

Private Work:

I’ve stayed steady and increased my work flow on the private side, which includes mostly homeowners and lawyers/attorneys.

Most my private work is estate/trust/retrospective appraisals. I have also completed appraisals for divorce purposes on a case to case basis. I always appreciate the referrals to your clients needing an appraiser!

I have been completing more appraisals for homeowners who are seeking a neutral value opinion in weighing listing their home or not. I imagine this will continue and may be a tool added in conjunction with agent BPOs.

I wish you all the best as we enter the Holiday Season. I always want be a positive resource for the market. Any questions or thoughts, please always reach out!

Bryan Lynch

​Advantage Appraisals : Lender and Private Assignments

NAA Designation and REAA Member