Homeowners remain realistic on prices

The gap between the values homeowners put on their properties and those given by professional appraisers remained close in August compared to a year ago.

The Quicken Loans Home Price Perception Index shows that homeowners expectations were 0.28% higher on average than appraisers’ valuations, maintaining the gap seen in July.

This compares to a year ago when owners underestimated appraisers by 1.35%. 

The index is based on the mortgage lender’s comparison of estimated values from mortgage applicants and the appraised values of their homes.

It shows that there are wide variations though on a metro level. For example, appraisers’ valuations in Chicago averaged 1.74% below homeowners’ estimates, while in Boston homeowners were under-valuing their homes by an average 2.88%.

Home value higher led by the West
Meanwhile, Quicken’s Home Value Index shows a 1.08% rise in appraisal values in July compared to June and a 5.79% rise year-over-year.

All regions gained but the West saw the highest growth (2.61% month-over-month and 8.01% year-over-year).

“With the summer winding down, there were less 'for sale' signs on lawns across America which left the buyers competing over these available houses and driving the prices up," said Bill Banfield, Executive Vice President of Capital Markets at Quicken Loans. "We are all watching closely to see when more homes will be put up for sale, balancing the markets, because the demand for housing isn't slowing down.”