Real Estate Appraisers NAICS 531320

Nov 17, 2025 - Pending Home Sales Weak

• Tepid pending home sales could signal weaker demand for residential real estate appraisal services. Pending home sales were flat in September compared to August and were down 0.9% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Contract signings matched the second-strongest pace of the year. However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low. A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market."
• The Market Composite Index, a measure of mortgage application activity, fell a seasonally adjusted 0.6% for the week ending November 7, 2025, compared to the week before, according to the Mortgage Bankers Association (MBA). The seasonally adjusted Purchase Index increased 6% over the same period. MBA Vice President and Chief Economist Joel Kan said, "Purchase applications picked up almost 6 percent over the week to the strongest pace since September, despite mortgage rates increasing slightly, with the 30-year fixed rate rising to 6.34%. Purchase applications for conventional, FHA, and VA loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022." Home purchase mortgage applications are a demand indicator for real estate appraisal services.

• The National Association of Home Builders' 2025 Profile of Home Buyers and Sellers reveals a record-low 21% share of first-time buyers, with their median age rising to an all-time high of 40. This shift signals significant implications for the real estate appraisal industry. Fewer first-time buyers mean slower turnover, reduced demand for entry-level homes, and fewer comparable sales, complicating valuation accuracy. With repeat buyers aged 62 making larger down payments and more all-cash purchases, appraisers must adjust for widening equity gaps and changing buyer profiles. Longer homeownership tenure—now at a median of 11 years—limits transaction data. The affordability crisis, driven by limited inventory and delayed homeownership, reduces housing wealth accumulation, which in turn affects appraisal benchmarks.
• High home prices and mortgage rates have priced many would-be homebuyers out of the market, creating robust pent-up demand that’s unlikely to be realized in the near term, according to The Wall Street Journal. In 2024, there were about 1.1 million first-time buyers, compared to an annual average of about 2.1 million over the last 20 years, according to the National Association of Realtors (NAR). To afford a median-priced new home today, a buyer would need an income of $127,000 compared to $79,000 for the same home in 2021, according to Harvard’s Joint Center for Housing Studies. Industry watchers suggest that many first-time buyers may remain stuck on the sidelines, absent a significant drop in mortgage rates or a recession that pushes down home values.