Homes Are Selling for Less Than the Appraised Value

There appears to be a gap between the amount homes are being appraised for and the actual sales price. 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 the sales price. As of June 2024, the average over-appraisal was 9% among all housing markets.

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.

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