Homes Are Selling for Less Than the 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.

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