The gap between homeowners’ opinions of their homes’ value and actual appraised value has widened for the first time in six months
The gap between homeowner estimates of home values and appraiser opinions has widened for the first time in six months, according to new data.
Quicken Loans’ National Home Price Perception Index showed that average appraisal value fell 1.33% below homeowner expectations last month. The widening gap between homeowner opinions and appraisal values reverses the narrowing trend that dominated the second half of 2016, according to Quicken Loans.
The gap between appraised value and homeowner expectations had been closing since June, but last month’s 1.33% perception difference erases that improvement, according to Quicken Loans.
"It's our hope that homeowners use the HPPI's unique data as an insight into their local housing market," said Quicken Loans Chief Economist Bob Walters. "When consumers have a better grasp of their local market conditions, it can help influence their expectations and ultimately lead to a smoother mortgage or home sales process.”
Home values fell on a monthly basis in December — although they continued their year-over-year climb, according to Quicken Loans’ Home Value Index. The average appraised value dropped 1.19% month over month. On an annual basis, home values climbed 3.85% nationally. However, that’s a slower pace than November’s 5.28% annual increase.
"Home value growth has been mostly driven by enthusiastic buyers vying for a smaller than usual inventory of properties," Walters said. "Appraised values have dipped along with the seasonal decline in sales around the winter months. It's yet to be seen if value growth will build as sales rise in the spring, or as construction increases.”
