Homeowners remain consistent in estimating the value of their homes, expert says
Homeowners nationwide still have a good idea what their home is worth even as the gap between homeowner’s estimate and the appraisal widened slightly from July.
The average home appraisal was 0.64% lower than what the owner expected, according to the Quicken Loans National Home Price Perception Index (HPPI). A month ago, the gap was 0.63%.
The index also showed that only three metro areas had an average appraisal value that was more than 1% lower than the owner’s estimate. The gap in Boston, which had the strongest HPPI, was 2.05%, while Chicago had a gap of 1.77%.
“Homeowner perceptions have remained in a relatively tight band, with less than a percent gap between expectations and actual appraisal values, for the last two years,” said Bill Banfield, executive vice president of capital markets at Quicken Loans. “This is a good sign that homeowners have kept their finger on the pulse of their local housing market as home values continued to rise. This is a great news for those who haven’t already tapped their growing home equity. Based on the report, they are likely to have a good estimate of their home’s value and, as a result, have a smooth process when it comes time for the appraisal in the mortgage process.”
Home values rose across the nation, according to the Quicken Loans Home Value Index (HVI). The index grew 0.95% from July to August and 4.64% annually.
“Home values continue to reach levels never before seen. As the growth trend persists, the question everyone considers is whether we will have affordability issues,” Banfield said. “The good news is that the dip in interest rates, around three-year lows, has prevented buyers from needing to adjust their budget and kept home sales strong.”
