Homeowners across America are understanding their home’s worth more as the gap between homeowner estimates and appraiser opinions narrows. Average home appraisal values in January were only 1.75 percent lower than what homeowners were anticipating, according to Quicken Loans’ Home Price Perception Index (HPPI). This continues the trend of nearing equilibrium between expectations and actual appraisal values.
While the HPPI is narrowing, home values experienced a small pullback in January. According to Quicken Loans’ National Home Value Index (HVI), values decreased 0.42 percent since December, although year-over-year growth continued with an increase of 3.37 percent.
While January was the fifth month the National HPPI moved closer to equilibrium, the homeowners and appraisers in many metro areas still do not see eye-to-eye. This is particularly true in the west where homeowners are continuing to underestimate the value of their home as they struggle to keep up with rising home values.
“It’s always important to understand your local real estate market,” says Quicken Loans Chief Economist Bob Walters. “If home values are growing in the area, homes may be gaining equity faster than consumers realize. On the other hand, if the local market is struggling, the appraisers – who are most aware of home value changes – may recognize this before homeowners come to terms with reality.”
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