Homeowners in many markets are getting a strong realistic view of home prices in their markets. Appraised values were, on average, just 0.36 percent lower than what homeowners expected in March, according to Quicken Loans’ National Home Price Perception Index. Further, more than 80 percent of the metro areas analyzed showed appraisals at, or higher than, the owner’s estimates.
“This month’s HPPI is great news for homeowners who may be thinking of selling their home, or using some of their equity,” says Bill Banfield, Quicken Loans’ executive vice president of Capital Markets. “Not only are owners’ and appraisers’ views of the housing market getting closer together when looking at the nation as a whole, but homeowners in many major areas are building equity at a rapid pace.”
For the analysis, Quicken Loans asked owners to estimate their home’s value at the beginning of the mortgage process. An appraiser then later provided an opinion on the home’s value, and the two were compared.
Homeowner and appraiser estimates have continued to converge each month this year. But perceptions do vary geographically. View the chart below to see a snapshot of appraiser versus owner perceptions by metro.
Source: Quicken Loans
