Independent Appraisal is Vital to the Market
Reporting property values more accurately is critical to improving market performance. An accurate appraisal is an important part of the home buying process and an independent appraisal industry is critical to restoring faith in the housing market.
There are many challenges currently facing the appraisal industry, and appraisals are one of the most crucial and
overlooked aspects of the recovery of the real estate market.
Consumer Spending Falls to Weakest Level in Six Months
Consumer spending was flat in May for the first time in six months as demand for motor vehicles waned, but weak
inflation pressures should ease the burden on cash-strapped households. The Commerce Department said on Friday April’s
consumer spending was revised down to show only a 0.1% instead of the previously reported 0.3%. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was also held back by weak sales at service stations as the pump price of gasoline fell from lofty levels early in the year. Weak income growth as the economy struggles to generate enough jobs to cut into high unemployment is also curbing spending. The increases, thus far, have been in line with economists’ expectations. The amount of income available to households after accounting for taxes and inflation rose 0.%. That followed a 0.% gain in April.
Other appraisal challenges include limitations of the current reporting format, lagging market information, discrepancies in market definitions, the funding structure of appraisal programs, and a declining number of appraisers. NAR represents about 30,000 state-licensed and certified appraisers throughout the country, who report that their colleagues are leaving the industry for many reasons, but among the most cited is that experienced appraisers refuse to work under the current AMC-imposed climate. Improvement of this climate would ultimately mean the stabilization of the housing market, restored faith in buyers, and accurate figures in pricing on a nationwide scale.
