Homeowners are staying consistent about their perception of their home’s value. Homeowners and appraisers are staying relatively even in their view of home values, according to the recent August National Quicken Loans Home Price Perception Index (HPPI). Levels are the the same in August as the were in July, however, the HPPI found that appraisers' and owners' opinions are much closer together year over year. A year ago, homeowner estimates were 1.35 percent lower than appraiser opinions.
TheNational HPPI reported the average owner estimate was 0.28 percent lower than the value supplied by the appraiser in August, according to the HPPI. Some cities are expecting home values even higher, for example, in Chicago, the average appraisal value is 1.74 percent below what the homeowner expected, However, the study found that on the metro level in other cities, homeowners are seeing appraisals higher than expected. For example, Boston homeowners may see an average of 2.88 percent appraisal value than what was expected.
"The variance in the HPPI across the country perfectly illustrates just how localized the real estate market is and how different it can be from one city to the next," said Bill Banfield, Executive Vice President of Capital Markets at Quicken Loans. "It's important for homeowners to look at their local housing market, and their home, objectively before estimating its value. Real estate experts can help them properly estimate their home's value to make the process easier – whether they are selling, or refinancing."
Quicken also studied home value in their Home Value Index (HVI). According to the HVI, home values have increased by 1.08 month over month as of August, and a a 5.79 percent year over year jump in appraisal values.
"With the summer winding down, there were less 'for sale' signs on lawns across America which left the buyers competing over these available houses and driving the prices up," Banfield said. "We are all watching closely to see when more homes will be put up for sale, balancing the markets, because the demand for housing isn't slowing down.”