As somebody who lived in Northern California in the communities which first started spiking in the early 2000's, I've always had a pet theory from the time.
Housing Appraisers realized they could tack on $10k per house when appraising, and they realized that nobody would stop them. Realtors loved that because they got more commission, buyers realized that houses were going up fast so they'd better get in while they could, appraisers got called back more in a tight market and everybody made money. There were *no* controls on the appraising.
Housing Appraisers realized they could tack on $10k per house when appraising, and they realized that nobody would stop them. Realtors loved that because they got more commission, buyers realized that houses were going up fast so they'd better get in while they could, appraisers got called back more in a tight market and everybody made money. There were *no* controls on the appraising.