Homeowners Continue To Overestimate Their Home Value

Dated: 06/14/2017

Views: 604

Homeowners continue to overestimate their home value


Homeowners and appraisers continue to hold conflicting views on the value of their home, a gap that widened once again in April, according to the Home Price Perception Index from Quicken Loans. Appraised home valued came in 1.9% lower than what homeowners expected as many Americans continued to overvalue their home. This marks the fifth consecutive month where the gap between appraiser and homeowner opinions widened.


(Source: Quicken Loans)

Although the gap continued to widen, appraised value increased in April. The National Home Value Index, which measures home prices based solely on appraised values, shows home prices increased 1.06% in from March and 5.08% from April 2016.
The gap between homeowners and appraisers of 1.9% is up from last month’s gap of 1.77%.
“The appraisal is one of the most important data points in a mortgage transaction,” said Bill Banfield, Quicken Loans vice president of capital markets. “This single number can impact how much money a buyer needs to bring to closing, or the equity that is available to the homeowner on a refinance.”
“If homeowners have a grasp on home value differences throughout their local area, it can lead to a smoother mortgage process,” Banfield said.


(Source: Quicken Loans)

And while homeowners are overestimating the value of their homes, home price growth is accelerating. The HVI increased 5.08% annually in April, up from March's annual increase of 3.3%.
"Home values were pushed higher once again by the demand for housing outpacing the stock of available homes," Banfield said. "This effect is intensified by the start of the spring buying season."
"While sellers are obviously thrilled as their investment continues to grow in value, this trend could make homebuyers set their sights on smaller homes or less pricey neighborhoods," he said. "I would encourage homeowners who are considering listing their home to take advantage of the opportunity they have in this sellers' market."

Jeremy Letzelter

I have worked in sales for over 13 years. I have purchased and sold investment properties for the past 10 years. I'm looking forward to helping people acquire the American dream of home ownership. Whe....

Want to Advertise on this Site?

Latest Blog Posts

Why You Actually Need To Hire A Buyers Agent When Purchasing A Home

When you first start looking at houses to buy, you’re probably looking to find the best house possible…not looking for the best real estate agent possible.It usually begins innocently enough

Read More

Home Prices Continue To Reach New High

Case Shiller: Home prices continue to reach new highsHome prices reached an all new high across the U.S. in June, according to the latest index released from S&P Dow Jones and CoreLogic. Nationally,

Read More

Inventory On The RISE

(August 24, 2017 – Columbus, OH) –  Central Ohio housing inventory continued to increase during the month of July to 5,498, an 8.3 percent increase over June, although still down 14.1

Read More

Dont Worry Be Happy

Three ways to ease your fears about making a moveThe article below is for real estate professionals to use on their own blog or website copyright free.With low inventory in many markets throughout

Read More