Credit, Appraisals Hurting Home Sales, NAR Says

Washington, DC, Oct. 12, 2012 -- The real estate market is recovering but still faces hurdles, notably from tight mortgage credit, according to the National Association of Realtors.

In addition what NAR says are faulty real estate appraisals are also holding back home sales.

NAR says appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years, including the use of out-of-area valuators without local expertise or full access to local data, inappropriate comparisons, and excessive lender demands.

In addition, before the beginning of last year, some lenders’ loan processors edited valuations, cutting them by a certain%age, NAR said.

Although 65% of Realtors surveyed in September report no contract problems relating to home appraisals over the past three months, 11% said a contract was cancelled because an appraised value came in below the negotiated price, 9% reported a contract was delayed, and 15% said a contract was renegotiated to a lower sales price.


Other Archived Articles

Mannington Files Appeal in Home Legend Dispute   Full Article
Rome, GA, May 6, 2013 -- Mannington Mills in April was handed a setback in a copyright-infringement dispute with laminate maker Home Legend over a line of maple-look laminate.

GSA Committee Recommends LEED as Measure   Full Article
Washington, DC, May 6, 2013 -- The Green Building Advisory Committee has officially recommended that the LEED green building certification system be used for all GSA buildings as the best measure of building efficiency.

Mohawk's Wright Named Chairman of Two Groups   Full Article
Amelia Island, FL, May 6, 2013 -- The Georgia Association of Manufacturers and the Manufacturers Education Foundation each elected new officers and board members at the 113th Annual Meeting of GAM and the 70th Annual Meeting of MEF.

First-Time Delinquencies Lowest in Six Years   Full Article
New York, NY, May 6, 2013 -- First-time delinquent home loans fell to 0.84% of the 50.2 million mortgages in March, according to Lender Processing Services.

Services Sector Expands at Slower Pace in April   Full Article
Washington, DC, May 3, 2013 -- The services sector of the economy expanded at a slower pace in April than March, according to the Institute for Supply Management.

Factory Orders Decline More Than Expected   Full Article
Washington, DC, May 3, 2013 -- Factory orders fell 4% in March, the Commerce Department reported Friday.

Mohawk Completes Spano Acquisition   Full Article
Calhoun, GA, May 3, 2013 -- Mohawk Industries said it has completed the acquisition of Spano Group, a Belgian panel board manufacturer.

Number of Jobs Rises, Unemployment Rate Falls   Full Article
Washington, DC, May 3, 2013 -- Employers created 165,000 jobs in April and the unemployment rate fell to 7.5% from 7.6%, according to the Labor Department.

Tile Shop Holdings Reports Higher Sales   Full Article
Minneapolis, MN, May 3, 2013 -- Tile Shop Holdings reported a net loss of $44.7 million in the first quarter, compared to net income a year ago of $10.1 million.

Summit Industrial Expanding into South Carolina   Full Article
Dayton, OH, May 3, 2013 -- Industrial floor finishing firm Summit Industrial Flooring is moving its headquarters and expanding its operations into Charleston, S.C.

Imola Wins Coverings Best Booth   Full Article
Atlanta, GA, May 3, 2013 -- Cooperativa Ceramica d’Imola won Coverings 2013 Best in Show for its booth design presented by Confindustria Ceramica of Italy.

Floor Styles Joins Fuse Alliance   Full Article
Aurora, CO, May 3, 2013 -- The Fuse Alliance said that Floor Styles of Midvale, Utah is its newest member.

Mohawk Earnings, Sales Rise in Quarter   Full Article
Calhoun, GA, May 3, 2013 -- Mohawk Industries reported first quarter net earnings of $50 million and earnings per share of $0.72, up from $41 million a year ago.

Surfaces Group Director Teague Promoted to VP   Full Article
Dallas, TX, May 2, 2013 -- Hanley Wood Exhibitions has promoted Dana Teague to vice president.

Initial Jobless Claims Lowest in Over Five Years   Full Article
Washington, DC, May 2, 2013 -- Initial claims for unemployment benefits unexpectedly dropped last week to the lowest level in more than five years, according to the Labor Department.

Planned Layoffs Decline in April   Full Article
Chicago, IL, May 2, 2013 -- Planned layoffs dropped 23% in April from March to their lowest level since December, according to outplacement firm Challenger, Gray and Christmas.

Mortgage Applications Rise Last Week   Full Article
Washington, DC, May 2, 2013 -- Mortgage application volume rose 2% from the prior week as several interest rates declined, the Mortgage Bankers Association said.

Manufacturing Sector Barely Grows in April   Full Article
Tempe, AZ, May 2, 2013 -- Manufacturing in the U.S. barely grew in April as the rate of growth fell to the lowest pace since December, according to the ISM index.

Non-Farm Payrolls Rise 119,000 in April   Full Article
Roseland, NJ, May 2, 2013 -- Private sector employment increased by 119,000 jobs from March to April, according to the April ADP National Employment Report.

Construction Spending Falls in March, Up from 2012   Full Article
Washington, DC, May 2, 2012 -- Construction spending fell in March from February but was still higher than a year ago, according to the Commerce Department.