Today eppraisal.com released its National Real Estate Market Analysis report for 183 markets across the continental U.S. This report, which tracks median sales price of residential homes, compares data on homes sold in the first quarter of 2009 with homes sold in the second quarter of 2009.

In this comparison of the first quarter with the second quarter, there are signs that most markets have hit bottom and are showing signs of recovery. In the last eppraisal.com report, only 50 percent of the markets tracked saw increases in median home values. In the current report, 76 percent of the markets tracked saw increases, while less than 20 percent saw a decline in median home values. Only two markets on the entire list saw a double digit decline in median home values.

Overall, the gains are spread across the U.S, but there are a few hot spots, with areas in Ohio and Michigan seeing the biggest increases. These areas have had some of the steepest declines in past reports and have the greatest potential for growth. For example, in Springfield, Ohio, the median home value jumped 36.4 percent to $75,000. Lima, Ohio, increased by 46.9 percent to a median home value of $78,000. In Michigan, the Lansing area saw a 31.6 percent increase to a median value of $75,000. The Saginaw area increased 47.2 percent to a median value of $44,000, and Battle Creek increased by 17.2 percent to a median value of $45,000.

The full list of all 183 markets can be found in our market report. However, here are some of the most notable highlights:

• Markets in Ohio accounted for half of the top 10 markets that saw the greatest increase, with Akron leading the list followed by Sandusky and Cleveland areas.
• At a median home value of $151,000, Orlando-Kissimmee, Fla., remains an affordable area with the median still less than the median a year ago when it was over $210,000. However, the decline has slowed from 8.5 percent in the previous eppraisal.com market report to 3.2 percent in the current report.
• Other notable affordable areas include: Las Vegas-Paradis, Nev., down 6.2 percent to a median value of $140,900; Cape Coral-Fort Myers, Fla., down 1 percent to a median value of $85,100; and the Tampa-St. Petersburg area up 3.3 percent to a median value of $129,000.
• The San Francisco-San Mateo areas of California had the highest median home value on the list at $673,000, which is up 18.1 percent over the first quarter.
• Detroit-Dearborn, Mich., area had the lowest median home value on the list at $14,000, which is up 12.9 percent.
• Of the 139 markets showing increases in median home values, only 24 of those markets remained under $100,000.

See a complete list of real estate market rankings from eppraisal.com

There may be nothing so controversial in the real estate industry right now as the Home Valuation Code of Conduct (HVCC). The code was established by Fannie Mae along with the Federal Housing Finance Agency (FHFA) in an attempt to regulate the appraisal industry and create more separation between appraisers and lenders.

The HVCC states that Realtors and mortgage brokers are prohibited from selecting appraisers. Lenders can select “in house” appraisers, but due to restrictions, many are hiring appraisal management companies (AMCs) to obtain their appraisals.

Since roll-out, Realtors and mortgage brokers claim low-ball appraisals are killing their deals, and some appraisers feel the real estate industry is just pointing fingers.

Here’s how some on each side of the ring weigh in:

As the accusations fly around, the only thing that’s apparent is that the system remains flawed, and the HVCC is doing nothing to help. Representatives Childers (D-MS) and Miller (R-CA) have introduced a bill calling for an 18-month moratorium on the HVCC in order to work out the kinks, though some think the this will do nothing to solve the issue.

What do you think?

I’ve noticed a lot of news lately regarding homeowners attempting to lower their property taxes due to reduced home values. My first instinct was, “Sign me up!” After all, my home’s value dropped more than 55% in the last few years. On one hand, this could mean thousands of dollars in savings, especially in areas like mine where the decline in home values is significant. On the other, what will it mean for publicly-funded services like fire departments, law enforcement, schools, and libraries?

Perhaps nothing. As the amount of property tax collected decreases, local governments can raise the tax rate to make up for it. Wait, I could actually end up with a tax increase this year?

“Taxes are based on property values times [the tax rate]. We could have declining values but make up for it by raising the rate,” said Bill Donegan, the property appraiser for Orange County, Fla., which includes my hometown, Orlando. (source CNNMoney.com)

But wait, there’s more. He goes on to say that the decline in home values has been so great, it’s unlikely that any increase in tax rate would offset the lower assessments. To make up for it, local governments can raise fees and even taxes in other areas.  In other words, the money is going to come out of your pocket eventually.

In the meantime, if you want to challenge your property tax assessment, eppraisal.com can assist.  Here are some steps to follow:

• Know your home’s property value and compare it to the tax assessment value.
• Verify the information on record (number of rooms, square footage, etc.)
• Research neighborhood property values
• Get an appraisal from a licensed professional appraiser
• Submit your case to the county tax assessor

It’s not surprising that pools are most popular in California, Arizona, and Florida, where the summers are hot and the year-round temperature warm. But even though the National Association of REALTORS® say pools can add as much as 8 percent to the value of a home in these states, not all home buyers will see the value. Families with young children, older home buyers, or those not interested in the upkeep of a pool may not even consider a pool home. Of course, in areas where the winters are cold, a pool can even detract from the home value.

Yet, it’s hard to overlook the benefits of a pool, especially when you live in Florida like I do. It’s a great way to cool off in hot weather, they are a great focal point for entertaining, and let’s face it, kids love them. So if you’re thinking about installing a pool, do it for the fun factor if it’s something you desire, not as a tactic to increase your home’s value or attract buyers.

There was a time when appraisers would not consider foreclosures as adequate comparable sales, but the market was different then. Today, the volume of foreclosures and short sales may lead appraisers to use those sales to determine a home’s value if the comparable sale was on the market long enough to be exposed to a significant number of buyers. That is not to say that other elements are not factored in, such as the condition of the property, curb appeal, amenities, the local market conditions, and a good sampling of the most recent comparable sales.

While using automated valuations, or AVMs, from sites like eppraisal.com® and Cyberhomes™ can be a good starting point, getting a true property appraisal relies on the in-depth knowledge of a licensed appraiser who understands on-the-ground factors. If you are working with a lender, it’s important that you know they obtained an appraisal from a licensed appraiser. Don’t just take their word for it. Ask to see a copy of the appraisal.

If you are interested in obtaining an appraisal on your own, you can search for a licensed appraiser on your area in the eppraisal.com Professional Directory.