Appraisal Now: Market shifts, policy signals, and what’s next for appraisers
In this issue:
- Appraisal Volume Tracks the Loan Market: What five-year data says about the refi boom, the bust, and today’s “new normal”
- Guest Commentary: The AI President on the value of real estate appraisers and why independent valuation matters for markets and lending
- Advocacy Update: Kentucky’s HB 355 would overhaul appraiser regulation with mandatory licensing, new liability timelines, and board restructuring
- Learning and Saving: New URAR education sessions launching April 23, plus a final-week 30% discount on current book editions (ends April 15).
Boost Your Visibility in the Refreshed Find an Appraiser Tool
Find an Appraiser is one of the Appraisal Institute’s most valuable member benefits, helping the public and industry professionals quickly connect with qualified AI members based on location, property type, and services. After a major refresh project to make the directory more user-friendly and improve search results, the updated tool is scheduled to debut next week at the AI Annual Conference in Nashville. Please take a few minutes now to review and update your profile (welcome message, service areas, and professional details), confirm your contact information, and remember to check the attestation box each time you make changes.
Full instructions, a how-to video, and additional details are available in the Support Center.
Insights
Appraisal Volume Follows Loan Market Decline:
A Five-Year Analysis
The residential appraisal profession has experienced dramatic shifts over the past two decades, with volume closely mirroring the broader mortgage lending market. Data spanning from January 2006 through July 2025 reveals a clear correlation: When loan originations rise, appraisal demand follows, and when lending contracts, appraisers feel the impact directly.
The COVID Refinance Boom and Bust
The most striking trend of the past five years began with the unprecedented refinance surge during 2020-2021. As the Federal Reserve slashed interest rates in response to the pandemic, mortgage activity exploded. Monthly appraisal volume peaked at nearly 1.58 million in January 2021, the highest level in the dataset's 19-year history, surpassing even the pre-2008 housing bubble.
This boom proved short-lived. When the Fed began aggressively raising rates in 2022 to combat inflation, the mortgage market contracted sharply. Appraisal volume plummeted 52% year-over-year in 2022, followed by another 38% decline in 2023. By December 2023, monthly volume had fallen to approximately 308,000, a staggering 74% below the January 2021 peak.
Stabilization, but Far from Normal
While the data suggests the worst may be behind us, a full recovery remains elusive. After bottoming out in late 2023, appraisal volume has shown modest improvement: 2024 averaged roughly 382,000 monthly transactions, and the 2025 year-to-date is averaging approximately 390,000. However, the current volume of roughly 410,000 remains nearly 40% below the historical average of 679,000 monthly transactions. This underscores that while the market has stabilized, it operates well below normal levels.
The past five years reinforce a fundamental reality for the residential appraisal profession: Appraisal volume is inextricably linked to mortgage market activity. While recent data suggests stabilization, the path to a full recovery will depend largely on broader lending conditions, particularly interest rates and housing turnover.
For readers interested in exploring the underlying data in greater detail, the Consumer Financial Protection Bureau (CFPB) maintains a publicly available database of loan origination activity through its Home Mortgage Disclosure Act (HMDA) platform, which serves as a valuable resource for understanding long-term lending and appraisal trends.
Your Benefits
Exclusive Market Data for Smarter Valuations
AI members receive access to proprietary market data resources that support deeper analysis and stronger appraisal outcomes. These tools are designed to help appraisers interpret trends, enhance reporting, and deliver more credible, data-backed insights to clients. As part of the broader AI benefits package, including professional tools, education, and research, market data access reinforces members’ ability to stay competitive and informed in a rapidly changing marketplace.
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AI Blog
Conference sessions offer valuable insight. Coaching helps you apply it.
A new blog highlights coaching opportunities at the 2026 Annual Conference, including small-group MasterMind sessions and one-on-one coaching opportunities designed to help you work through real business challenges and leave with clear, actionable next steps.
Read the blog to learn how to make the most of this hands-on conference experience.
Next Steps:
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The Mortgage Modernization Push: What Washington Is Signaling on Valuation
April 23, 2026 11:00 CDT
What’s the policy direction and what are the early signals from FHFA, HUD/FHA, VA, CFPB, and the banking regulators? Our Government Relations team and outside lobbying consultants will provide a Washington rundown and translate it into practical impacts for valuation stakeholders.
Panelists:
Scott Dibiasio, Director, Government Affairs
Brian Rodgers, Senior Manager of Federal Affairs, Government Affairs
Advocacy Updates
VA Appraisal Legislation Introduced in Senate
Bipartisan legislation has been introduced addressing appraisal practices within the VA Home Loan Program. The bill includes provisions to adjust VA appraisal fees to keep pace with inflation, increase fees in markets with appraiser shortages, reimburse mileage for assignments in high-demand and rural areas, and direct the Department of Veterans Affairs to study whether the VA appraisal process should more closely mirror that of the Federal Housing Administration.
The proposal reflects several themes outlined in the Administration’s recent Executive Order on appraisal modernization, signaling that the policy direction may now be moving into the legislative arena. The Appraisal Institute’s Government Affairs team is actively reviewing the legislation and developing a strategy to address the potential impacts on the profession
Kentucky Overhauls Appraiser Regulation (HB 355)
The Kentucky General Assembly has passed HB 355, a sweeping update to the state’s real property appraiser regulatory framework. The bill has been sent to Governor Andy Beshear, who has 10 days (excluding Sundays) to sign or veto it, or it will become law without his signature. The measure updates licensure, liability, governance, and scope of practice.
Most notably, the bill moves Kentucky to mandatory licensing. It eliminates the prior “voluntary certification” model and makes it unlawful to perform appraisal, appraisal review, or appraisal consulting services without a state credential, subject to limited exceptions. Few states have made a similar shift in recent years; Massachusetts is considering one now.
The legislation also sets a statute of limitations for civil claims against appraisers. Most claims must be filed within one year from the date the appraisal report is completed and transmitted. Fraud or intentional misrepresentation claims have a five-year limit, and discrimination claims follow a one-year period or the applicable federal standard.
HB 355 restructures the Kentucky Real Property Appraisers Board. It is administratively attached to the Division of Professional Licensing but is no longer part of the Division of Real Property Boards. The bill also expands Board membership by adding two certified residential appraisers.
The law also confirms that licensed and certified appraisers may perform evaluations consistent with federal interagency guidelines. It distinguishes evaluations from appraisals by requiring appraisers not to present the work as performed in their licensed capacity and to include appropriate disclaimers.
On standards, appraisers must complete the USPAP update course within the first six months of each biennial cycle. The bill also shortens the deadline for filing administrative complaints to one year, aligning regulatory exposure more closely with the new civil limitations period.
The bill now awaits the Governor’s action. As implementation proceeds, additional guidance and rulemaking may be needed to ensure consistent application of the new requirements.
Final Week of New Edition Countdown
New editions of The Appraisal of Real Estate and The Dictionary of Real Estate Appraisal debut soon. Before they arrive, save 30% on current editions with discount code 2026. Transition pricing ends April 15 (11:59 PM CT).
Real Estate Horizons
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Your Community
Mark Ratterman Receives J. Scott Robinson Lifetime Achievement Award!
The Appraisal Institute is pleased to recognize Mark R. Ratterman, MAI, SRA, as a recipient of the J. Scott Robinson Lifetime Achievement Award, which honors individuals whose careers reflect a lifetime of service, leadership, and meaningful contributions to the appraisal profession.
Ratterman has been a professional real estate appraiser since 1979 and has contributed extensively to the advancement of the profession through education and authorship. He has taught for the Appraisal Institute and its predecessor organizations since 1982 and has authored numerous books, seminars, and courses focused on real estate appraisal. His work has also been published multiple times in The Appraisal Journal. He operates his appraisal office in Indianapolis.
In addition to his professional practice, Ratterman has demonstrated a longstanding commitment to public service. He has served in a variety of roles, including as a member of a city council, a local planning and zoning commission, and the board of directors of a sewer district. He currently serves on the Indiana Real Estate Appraiser Licensing and Certification Board and the Property Tax Assessment Board of Appeals in his county. He has also served on the board of directors for his local Realtor association.
Ratterman holds a Bachelor of Science degree from Indiana University and has earned the MAI and SRA designations from the Appraisal Institute. Through decades of leadership, education, and service, he has made a lasting impact on the appraisal profession and the communities it serves.
Join us in celebrating this year’s award recipients at the Appraisal Institute’s Annual Conference. Don’t miss this opportunity to recognize their achievements in person.
Until Next week
Team Appraisal Institute
