Here's the One Trend That Could Slow Down Property Funding in the Near Future
There's a decreasing number of real estate appraisers that could lead to longer waits, higher fees and lower-quality appraisals. The number of people in the industry has gone down 20% from 2007, and is expected to fall another 3% each year for the next decade, MarketWatch reports.
A shortage of appraisers could cause big delays in funding. As of now, appraisers are required for Fannie Mae and Freddie Mac-backed mortgages, which make up 90% of the market by loan count.
"As an appraiser, I should be quiet about this shortage because it’s great for current business," appraiser Craig Steinley says. But "what will undoubtedly happen, since the market can’t solve this problem by adding new appraisers, [is] it will solve the problem by doing fewer appraisals."
But maybe appraising is a dying tradition, as 62% of appraisers are 51 years or older. Or maybe it's just because there are more requirements to be certified, such as classes and apprenticeships—and those with a degree would prefer to just go into a higher-paying career.
And unfortunately, a computer can't match the precision of a human. At least not yet. [MW]
