High price: Renewed real estate activity will spur demand for appraisal services

Over the five years to 2017, the volume of appraisals has shifted unevenly amid improving construction markets, contracting and adjusting to demand in a postrecessionary environment. With easy access to and low cost of credit at the beginning of the five-year period, new residential construction increased and real estate appraisal professionals received an uptick in demand. Despite revenue turning the corner, however, operators continued downsizing and exiting the industry. Over the five years to 2022, IBISWorld projects that industry performance will be supported by a recovery in downstream real estate markets and increases in development and investment activities...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
-0.9%
Forecast Growth 17-22
Profit
Employment
65,191
Businesses
45,285
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • The industry will be supported by recovering downstream markets despite restrictive legislation
  • The industry has benefited from the continued recovery of the US housing market
  • Industry operators are expected to undertake greater qualitative analysis to reduce risk
  • Industry Report - Industry Locations Chapter

    The level of activity between geographic regions within the Real Estate Appraisal industry generally follows the geographic distribution of the US population. Establishment numbers and revenue patterns reflect business activity and population level patterns. The Southeast region, which accounts for about a quarter of the country's population, is forecast to account for 29.6% of the industry's establishments in 2017.The US population is slowly migrating toward the Sunbelt region. According to the US Census, the 10 counties with the largest population increases were all in California, Nevada, Arizona and Florida. As the population migrates, the need for office buildings, apartments and retail centers increases. Ind...purchase to read more.

    Additional Insights for the Real Estate Appraisal Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Appraisal Industry are

  • Access to highly skilled workforce
  • Upstream vertical integration (ownership links)
  • Maintaining a good reputation
  • IBISWorld analysts also discuss how external factors such as Existing home sales and Value of private nonresidential construction in the Real Estate Appraisal industry impact industry performance..

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    What is the Real Estate Appraisal Industry?

    Operators in this industry specialize in estimating the fair market value of real estate. Appraisers research a property or development to determine the characteristics pertinent to its market value. Valuations for a property are carried out when it is sold, mortgaged, taxed, insured or developed.

    Industry Products
  • Real estate appraisal - commercial
  • Real estate appraisal - residential
  • Real estate consulting
  • Real estate brokerage and other services
  • Appraisal management
  • Industry Activities
  • Conducting residential real estate valuations
  • Conducting nonresidential property valuations
  • Conducting other property-related research and analysis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Existing home sales
  • Value of private nonresidential construction
  • House price index
  • Yield on 10-year Treasury note
  • Housing starts

  • Current Performance
  • Nonresidential market builds up
  • Residential growth burst
  • Regulatory changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction market and risk
  • Profit margins increase
  • Tightened regulation
  • Table: Real Estate Appraisal Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Appraisal Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Commercial Leasing
  • Property Management
  • Law Firms
  • Consumers

  • Key Selling Industries
  • Database & Directory Publishing
  • Environmental Consulting
  • Software Publishing

  • Products & Services
  • Real estate appraisal - commercial
  • Real estate appraisal - residential
  • Appraisal management
  • Real estate brokerage and other services
  • Real estate consulting
  • Chart: Real Estate Appraisal Industry Products and Services Segmentation

  • Demand Determinants
  • Income and confidence
  • Interest rates
  • Consumer preferences to purchases
  • Regulation

  • Major Markets
  • Financial institutions & brokers
  • Law offices
  • Private owners
  • Government and other
  • Accountants
  • Chart: Major Market Segmentation for the Real Estate Appraisal Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Appraisal

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Appraisal Industry

  • Industry Globalization
    CBRE Group Inc.
  • Table: CBRE Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Appraisal Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Appraisal Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Existing home sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Broker Price Opinion
  • The estimated value of a property as determined by a real estate broker or qualified individual or firm (not a licensed appraiser).
  • Fair Market Value
  • The appraiser's opinion of value as written in an appraisal report. It should reflect what a willing seller would pay a willing buyer in an arm's-length transaction
  • Walk-Through
  • An inspection that includes a visit to each part of the interior of the house used in estimating value
  • Why buy this report?

    IBISWorld’s Real Estate Appraisal Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Appraisal:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Appraisal market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Appraisal, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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