Good afternoon —
I interviewed appraiser Ryan Lundquist for the latest episode of our Housing News podcast today and got some great insights into not just his local market, Sacramento, but also what appraisers are facing all over the country.
First, there's no doubt the current housing market is the "most aggressive" he's ever seen. You think Austin or Denver is suffering from all the cash buyers fleeing San Francisco? Try being just two hours away from the Bay Area. But Lundquist cautions against overestimating the effect of those movers. He thinks ultra-low interest rates and demographics are driving a lot of local demand, just like everywhere else.
"My observation is that every single market blames someone else, but the reality is that even though there is increased Bay Area migration, we have a really chaotic environment because buyers are hungry. Local buyers are pulling the trigger, and sometimes I feel like the narrative is maybe understating that, or not recognizing this dynamic — that really aggressive real estate is actually happening everywhere."
Calculating what a house is worth in the current market is rough, but as Lundquist notes, there's a difference between market value and "auction value" — the final contract price paid by buyers who get in a bidding war. Navigating that difference is what appraisers are paid to do, and right now they are drawing a lot of fire.
"There's a lot of hostility toward appraisers," he says. But although they are an easy target, lenders, agents and buyers should remember that appraisers aren't responsible for the lopsided conditions in the market right now, Lundquist says. They didn't cause the inventory shortage, historically low mortgage rates, or a COVID-fueled desire for more space.
Listen to the whole interview here, and sign up for our appraisal newsletter for more appraiser-specific content.
Until tomorrow —
Sarah Wheeler
HousingWire Editor in Chief
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