How precise were home appraisals in the latter half of 2024? A recent report from Corporate Settlement Solutions (CSS) indicates that in 57% of cases, appraised values surpassed the actual sales price. This marks an increase from 53% during the same period in 2023.

The firm’s biannual Appraisal Price-Gap Analysis report reveals that only 8% of homes were under-appraised, a decline from 12% in the previous year. Additionally, 36% of homes were appraised at the sale price, slightly up from 34% in late 2023.

Breakdown of the Appraisal Trends

The analysis covers real estate activity in 19 states and the District of Columbia, focusing particularly on the 10 states with the highest appraisal volumes.

During the second half of 2024, the average over-appraisal remained steady at 4% above the sales price, the same as in 2023. Meanwhile, the average under-appraisal value improved slightly, shifting from -8% in 2023 to -6% in 2024.

State-Specific Highlights

Among the top 10 states with the highest appraisal volume:

• Pennsylvania led with 76% of homes appraised above the sales price, with an average over-appraisal of 4%.
• New Jersey had the lowest percentage of over-appraised homes at 38%, with an average over-appraisal of 3%.

In contrast, in the under-appraisal category:

• Indiana had the highest percentage of homes appraised below the sale price at 17%, with an average under-appraisal of -6%.
• Kentucky recorded the lowest percentage of under-appraised homes at 5%, with an average under-appraisal of -4%.
• Virginia notably had 0% of appraisals falling below the sale price.

Expert Insights on Market Trends

According to Ashley Jelinek, CEO of Corporate Settlement Solutions, shifting market conditions continue to challenge appraisers:

“Over the past four years, home prices have increased significantly in many markets, but recently the rate of growth has begun to slow. These are just two of the challenges appraisers face in the current mortgage market. We launched our Appraisal Price-Gap Analysis last year to help the market, as a whole, understand the delta between appraisals and sale prices. Accurate, market-centric valuations are key to a healthy mortgage market, so it will be interesting to see how well appraised values align with market-driven sales prices throughout 2025 as the housing market continues to find its new normal.”

The data from this report underscores the ongoing evolution of the housing market and the importance of accurate home valuation in real estate transactions.