Fannie Mae and Freddie Mac are giving lenders the option to use automated appraisal tools, rather than conduct an in-person professional appraisal, on mortgages with loan-to-value ratios of 80% or below. CoreLogic compared automated versus in-person appraisal results for 190,000 homes appraised between July 2016 and June 2017. Its study showed that most appraisers valued homes at or slightly above contract prices (31.6% and 58.6%, respectively). Less than 10% of appraisals came in under purchase prices. In comparison, 54.6% of automated appraisals valued homes below purchase prices, leading to a higher loan-to-value ratio than buyers initially expected.
Zillow estimates that the total value of all US homes is 1.5x our national GDP. Home values grew by $1.95 trillion over the past year, or 2x Apple’s market cap (which grew by $250.5 billion, or 40%, over the past year.) Renters paid their landlords $485.6 billion.
The $10K cap on state and local sales/property/income tax deductions is a big deal! Washington Post reports that this Tuesday alone, Fairfax County, VA collected $16 million in 2018 property tax pre-payments and Montgomery County, MD collected $8 mllion on Wednesday. The article drew 3,463 comments in less than 24 hours. Governments in many east coast jurisdictions are convening emergency sessions to assess 2018 property taxes in advance, as the IRS says only taxes that have already been assessed can be deducted on 2017 tax returns. In King County, Assessor John Wilson told Seattle Times that property tax pre-payment is not an option, as 2018 tax bills won’t be ready until next February.