Ive had loads of short vals lately, not refinances, purchases of house and land.
While the market hasnt tumbled, due to their not being much turnover, the valuers have less comparable sales to use.
Valuations for constuction has always been an issue, lately however its much more dificult.
there was a comment earlier on banks overlending after the FHOG boost, and now trying to shut the gate after the horse has bolted, and throwing the seasoned property investor out with the bath water (excuse the mixed metaphors).
Durign that time, the lenders were still writing to credit standards, set by the mortgage insuer and sercuritser, as they had previously. there was no drop in credit standards.
the first home buyers equity just came from the FHOG instead of the hard earned of the client. to the bank, mortgage insurer and securitser, equity is equity.
Since then the 3 parties have tightened credit standards, and the fhog has gone back to what it had been previously. Is there any wonder valuations are now more dificult? there is less people in the market, hence demand is less, hence values fall.
Sure you can make the argument your not selling, this is just a bank valuation, and for x y and z reasons the value should be higher, but in reality, if the valuer hasnt got comparable sales to use, because current listings are sitting on the market for months, and the sales that do come through are discounted, theres not much you can do about it.
Ive long suspected conspriracy theories of banks dictating results to valuers, but in reality, the lenders are actually on the opposite side of the fence. they want increased values. It means increased lending. Valex was set up so that bank staff couldnt manipulate the system. Ive spoken to lots of valuers, who all say they have never had anyone call and ask for a low val. the call is always to increase the val.
Of course the reason they dont is because they can and do get sued by mortgage insurers.