Drop in US Real Estate Appraisers Slows: Appraisal Institute Research
CHICAGO -- The number of active real estate appraisers in the United States fell less than 1 percent in the first half of 2014, the Appraisal Institute announced today, lower than the average annual decrease of 2.6 percent over the past six years.
Research conducted by the nation's largest professional association of real estate appraisers found that as of June 30, the total number of active real estate appraisers in the U.S. stood at 80,500, down from 81,050 on Dec. 31, 2013. A broader analysis suggests the rate of decrease could rise sharply over the next five to 10 years due to retirements, reduced numbers of new people entering the appraisal profession, economic factors and greater use of data analysis technologies, Appraisal Institute research found.
"As appraisers leave the profession, the Appraisal Institute is preparing the next generation through its education, publications and other training," said Appraisal Institute President Ken P. Wilson, MAI, SRA. "As the real estate valuation profession's leader, we will continue to ensure that we are preparing tomorrow's appraisers today."
The Appraisal Institute's research also found that the proportion of licensed appraisers in the U.S. continues to decrease and stands at 11.3 percent as of June 30. The proportions of certified residential appraisers (56.7 percent) and general/commercial appraisers (32 percent) increased slightly from year-end 2013. Also, 18.5 percent of appraisers held a license or certification in one or more states outside their home state. That number increased slightly from 18.2 percent in 2013 and 17.2 percent in 2012.
Appraisal Institute surveys also found:
Two-thirds (66 percent) of appraisers have spent at least 15 years in the valuation profession.
Thirty-nine percent work as sole proprietors (no employees/partners), and another 22 percent are an owner or partner in a firm.
Forty-one percent work as commercial appraisers, while 31 percent are residential appraisers.
Seventy-five percent work for an appraisal services firm.
More than half (51 percent) are ages 51 to 65, and another 11 percent are 66 or older.
Fifty-eight percent hold a bachelor's degree, and another 20 percent hold a master's or doctoral degree.
Forty-seven percent of Appraisal Institute professionals earn more than $100,000 per year, compared to 22 percent of non-AI professionals.