Homeowners Continue To Overestimate Their Home Value

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."


Jeremy Letzelter Headshot
Author:
Phone: 614-679-1522
Dated: June 14th 2017
Views: 554
About Jeremy: I have worked in sales for over 13 years. I have purchased and sold investment properties for the pa...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Are Investment Rentals Right For You - When thinking about investments
A Thought Before Selling Your Home For Sale By Owner - A Thought Before Selling Your Home
QUOTATION OF THE WEEK - QUOTATION OF THE WEEK..."The only
Homeowners Continue To Overestimate Their Home Value - Homeowners continue to

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Coldwell Banker King Thompson
8800 Lyra Drive Suite 600
Columbus, OH
614-532-4565
614-269-0404