On top of already sluggish home sales, are appraisals becoming the newest threat to the local housing market?

Real estate experts said sales are collapsing because appraisers are being more conservative and valuing homes for less than what buyers have agreed to pay. Some owners can’t refinance because appraisers say their homes are worth less than they had counted on.

Houses under contract again to a backup buyer, but because of new rules regulating appraisals, and a more conservative lending environment in general. The biggest challenge isn’t the economy, or buyers who can’t qualify for loans. It’s appraisers coming in with VERY low appraisals.

Part of what’s at issue is a new rule that went into effect May 1 prohibiting loan officers, mortgage brokers and real estate agents from selecting appraisers.