More housing experts are challenging the notion this nation is in a sustained housing recovery. And, the latest appraisal numbers back those challenges.
The appraisal volume rose slightly from last week, but as we enter the summer season, the market is holding still and steady, according to the latest National Appraisal Volume Index from a la mode.
a la mode is an appraisal forms software company that provides its findings exclusively to HousingWire each week.
The NAVI rose slightly at 0.3% from last week, a slight increase after last week’s jump of 16%. The four-week average growth remained flat at 0.0%.
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(Source: a la mode)
As the summer begins, the market is unable to move because of inconsistent economic news, said Kevin Golden, a la mode director of analytics.
While, in the last few years, the housing market improved, lack of inventory, high home prices and a shortage of inventory continue to plague homebuyers. In fact, as far as inventory goes, there is still room for two more years of expansion, said Managing Director Robert Curran in a webcast for Fitch Ratings, a financial information services company.
Appraisal volume is an indicator of market strength and holds some advantages over weekly mortgage applications.
For example, fallout is less for appraisals since they are ordered later in the mortgage process, after creditworthiness is determined, and there are few multiple-orders, by the time an appraisal is conducted.
a la mode captures 50% of the appraiser market – more than 6 million appraisals per year.