In Rockland County, New York, the real estate market is experiencing a significant disconnect between escalating home prices and appraised values. While the median sale price of homes has surged to approximately $710,000, up 9.2% from the previous year , appraisals often fall short of these market-driven figures.

This disparity is primarily due to appraisers relying on recent comparable sales, which may not reflect the current market dynamics. As a result, buyers and sellers face challenges in aligning expectations with appraised values, potentially complicating financing and negotiations.

The situation is further exacerbated by low inventory levels, with only 356 properties for sale at the end of 2023 , and rising interest rates, which have dampened buyer demand. These factors contribute to a market where prices continue to climb, but appraisals lag behind, creating a challenging environment for all parties involved.

As the market evolves, it’s crucial for buyers, sellers, and real estate professionals to be aware of this appraisal gap and consider alternative strategies to bridge the divide between market prices and appraised values.