The average appraisal in November was 1.87 percent lower than the value the homeowner expected, according to the Quicken Loans’ national Home Price Perception Index.
The difference between the values was slightly higher in October, making November the third consecutive month the gap between values have narrowed. Overall, November marks the 10th straight month homeowners’ expectations of their home’s value exceeded the appraisers’ valuation, according to the national index.
The nation’s average home values continued to rise in November according to Quicken Loans’ national Home Value Index (HVI). Appraised values rose an average of 1.08 percent since October, and have increased 4.84 percent year-over-year.
“The variation in HPPI values across the country is a reminder of how localized real estate truly is,” said Bob Walters, Quicken Loans Chief Economist. “While home values continue to make leaps forward on the west coast, it takes time for the homeowner to recognize those gains. In the same vein, home value increases are moderating in much of the country, causing homeowners to be overly optimistic about their property’s value.”