To be more realistic, owners should keep a close eye on homes selling around them, expert says
The gap between the perceptions of homeowners and appraisers continued to widen in April, according to Quicken Loans National Home Price Perception Index (HPPI).
The HPPI expanded to 0.87% in April from 0.78% in March.
"The continued widening of the gap between homeowners' and appraisers' viewpoints is evidence of just how hard it can be to keep your finger on the pulse of local housing – especially at the onset of home selling season," said Bill Banfield, executive vice president of capital markets at Quicken Loans. "I encourage homeowners to keep a close eye on the homes selling around them. This can help them to be more realistic when estimating the value of their home to refinance or sell."
At a national level, homeowners in most metro areas expected their homes to be appraised higher. However, appraisals in all but one metro areas averaged 2% higher or lower than what homeowners projected. Cleveland replaced Chicago at the bottom of the list, with appraised values averaging 1.95% lower than homeowner estimates. Meanwhile, Boston homeowners got an average of 2.08% more equity than they thought they would get in April.
April saw the largest monthly increase in appraised value since January 2015, the Quicken Loans Home Value Index (HVI) revealed. On average, home appraisal values in the US climbed 1.95% from March to April. The growth of home values remained steady, increasing 5.43% year-over-year.
Quicken loans said this is a jump from the growth in March, when appraised values rose 3.37% year-over-year.
Each of the regions measured also showed consistent growth, which led to the healthy national average. The Northeast was the lowest with a 1.16% increase, while the Midwest had the highest growth, with a 2.11% monthly rise and a 5.33% annual growth jumps. The West followed with a 3.87% year-over-year rise in home price appreciation.
"Demand for housing is high this spring. The strong economy is leading more to look for a home, but the persistent low inventory keeps home values rising across the country," Banfield said. "These new, higher levels are helping homeowners who are selling or accessing their equity – but the higher prices can make buyers reevaluate their budgets before heading out to open houses."
