Homeowners still believe their homes are worth more than what appraisers say, but their perceptions of the value are getting more in line with reality lately. The latest reading from Quicken Loans’ National Home Price Perception Index shows that homeowners’ perceptions were just 1 percent higher than appraisers’ opinions in November. This is the fifth consecutive month in which the gap between owner expectations and appraised values narrowed.
“The [index] compares the perceived gap between the homeowner and the appraiser’s opinion of a home’s value and has provided an intriguing look into the psychographics of our housing market,” says Quicken Loans Chief Economist Bob Walters. “The most recent HPPI indicates homeowners and appraisers are closer to agreeing at the end of 2016 than they were at the start of the year. It’s our hope that with this information the only surprises this holiday season are the ones wrapped under the tree.”
Appraisal values have been on the rise throughout 2016, according to the index. Appraisal valuations increased 0.42 percent in November and are up 5.28 percent year-over-year. The West continues to lead the country in home value growth, according to the index.