QUOTATION OF THE WEEK..."Only I can change my life. No one can do it for me." --Carol Burnett, American actress, comedienne, singer and
Homeowners Continue To Overestimate Their Home Value
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."
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....