Homes Are Selling for Less Than the Appraised Value
The trend is more prevalent in some markets, such as Kentucky, which saw 73% of homes appraised higher than what they actually sold for during the first half of 2024
July 19, 2024
Image: Freedomz / stock.adobe.com
On average, homes are selling for less than their appraised value.
There appears to be a disconnect between the amount a home is appraised for and the actual sales price of the home. According to financial services company Progress in Lending Association, home appraisal values were higher than sales prices 51% of the time during the first half of 2024. This is the largest gap between appraisals and sales prices recorded since 2020, when 42% of homes were appraised above their sales price. As of June 2024, the average over-appraisal was 9% across all housing markets studied.
Among the 10 states analyzed, Kentucky had the highest percentage of orders (73%) that appraised over the sale price for the first half of 2024 with an average over-appraised value of 10%. New York had the lowest percentage of homes (34%) that were over-appraised with an average over-appraised value of 5%. North Carolina had the highest average over-appraised value at 33% for the first half of 2024.
