For the sixth month in a row, the gap between homeowners’ estimated value and the appraised value of homes continue to widen, according to Quicken Loans.
The company’s latest National Home Price Perception Index (HPPI) recorded that homeowner estimates were higher by an average of 1.93% than appraised value at a national level. Home values increased by an average of 0.63% last month and rose 4.92% year over year, according to Quicken Loans’ most recent National Home Value Index.
“It’s important for consumers to see the HPPI and not only think about the difference in perceptions, but the different perceptions across the country,” said Bill Banfield, Quicken Loans executive vice president of capital markets. “Home values, and home value changes, vary widely depending on the city you’re in. Homeowners, and those looking to buy a home, should keep a close eye on their local market to better understand home values in their area, and the trend they are on.”
Only the Northeast experienced home-value loss, with a month-over-month decline of 1.63% in appraisals. Year over year though, all four regions experienced gains — a 1.15% increase in the Northeast and a rise of 6.85% in the West.
“The strong demand for housing paired with the low levels of inventory continue to push values higher,” said Banfield. “Prices are rising as values push higher, making many parts of the country enticing markets for sellers. Many owners will find that they can get more than expected out of their home.”
Slow appraisal system advantageous to cash buyers – Urban Institute
Sellers’ price expectations are too high study reveals