We know they are looking at the wrong data, but it is intentional. The studies themselves are completely biased and unscientific. This is called Confirmation Bias, and don’t think for a minute no one understands whats going on here. They do.

https://www.federalreserve.gov/econres/feds/files/2022039pap.pdf
Fed recap.

The ongoing spanish inquisition into appraisers personal lives… Ignore the 10,000 gorilla in the room.

They’re looking at the data all wrong with their own observational bias.

None of these yahoos has apparently considered the possibility that in minority areas where appraisers have verifiably stopped more deals with lower valuation opinions, is a likely consequence of the realty community behaving in a predatory fashion and clipping these groups up for exploitative deals. The appraiser is the only one stopping this and they won’t have it, it’s time to stop protecting certain segments of consumers so well. Equity!

Your tax dollars, hard at work.

I’m seeing the effects of uncontrolled lending allowance pass throughs and long periods of instant approvals already with some of these foreclosure orders. I’m looking at a 2000 year built super simple double wide, by the oil fields, having appreciated 330k in 10 years, from previous reo valuations around 70k, group movement of these units now at 400k or there abouts, taking a 25% dive and that’s just for starters. Who knew those depreciating boxes represented the highest appreciation segment of real property possible? If the people living there would just move 10 miles west, they’d get a real stick built for a lower price tag, a safer environment, more land.

The bubbles have not just blown up, they are like really consequential. I avoid some areas not because of the demographic specifically, but rather the obvious financial ignorance and obviously predatory agents whom haunt the areas. Not coincidentally it’s a high volume minority migrant section of town. I used to try to help people and just enraged agents with annoying comparisons like actual web links illustrating how I could buy that exact same and better manufactured home, less any depreciation, brand new from the factory floor for 150k. With a follow up that so you’re telling me the fifth acre lot by the oil fields is worth $250k land value? They don’t like that talk but thankfully for the borrowers, they are insulated from my service questions because they don’t speak english. I never went back and only go to these areas for foreclosures. Not coincidentally, the defaults are where you might imagine they would be.

The move for higher home values in minority tracts is synonymous with the ibuyer and hedge fund investors wanting higher profits on both sides of the deals. As these entities now speculate in residential housing and have special purchasing deals set up with GSE’s where they buy bulk volume defaulted units at special discounts, given first purchase opportunity ahead of everyone else. Or they hold them for rentals which causes artificially high rental prices and ongoing artificially high market values. The more distressed homeowners there are, the more acquisitions these companies make. Equity! The thing to do with appraisers is to make sure the public has someone to blame.

Hey Baggins…i think you answered your own question…” Higher taxes for everyone “..

Hi Kathy. Was cleaning out 20 years of bookmarks and found a gem from the past. I’ll leave this here in case anyone wants to reflect on amc industry conditions, how their influence has changed responses and perceptions of the appraisal industry, then vs now. The amc full fee hypothesis, Jeff Schurman. (the previous tavma amc trade group director)
https://appraisalnewsonline.typepad.com/files/the-amc-full-fee-hypothesis—jeff-schurman.pdf