Homeowners again misjudged the value of their homes in April, with their estimates coming in 1.90 percent above those of appraisers, according to the latest Quicken Loans’ National Home Price Perception Index (HPPI). The gap has now widened five months in a row.
The latest Quicken Loans National Home Value Index (HVI) shows appraised values rose 5.08 percent year-over-year in April.
“Home values were pushed higher once again by the demand for housing outpacing the stock of available homes,” says Bill Banfield, vice president of Capital Markets at Quicken Loans. “This effect is intensified by the start of the spring buying season. While sellers are obviously thrilled as their investment continues to grow in value, this trend could make homebuyers set their sights on smaller homes or less pricey neighborhoods. I would encourage homeowners who are considering listing their home to take advantage of the opportunity they have in this seller’s market.”
A summary of the HPPI:
Owner estimates of home values were higher than appraiser opinions by 1.90 percent, as reported by the National HPPI. This is compared to a 1.77 percent disparity between home value opinions in March. April marks the fifth month the spread between home value opinions widened nationally. A wide range of perceptions persists across the country, but month-to-month change in most metros was minor. The study continues to find appraised values higher than expected in the West, while it was more likely to have appraisals lower than owners estimated in the Midwest and East.
A summary of the HVI:
Home value growth not only continued, but accelerated in April. The National HVI showed appraisal values rose 1.06 percent from the previous month and increased 5.08 percent since April 2016. This is compared to 3.30 percent year-over-year growth in March. All regions measured by the HVI show positive momentum, ranging from 3.54 percent annual growth in the Northeast to a 6.52 percent year-over-year increase in the West.
“The appraisal is one of the most important data points in a mortgage transaction,” Banfield says. “This single number can impact how much money a buyer needs to bring to closing, or the equity that is available to the homeowner on a refinance. If homeowners have a grasp on home value differences throughout their local area, it can lead to a smoother mortgage process.”
For more information, please visit QuickenLoans.com/Indexes.
For the latest real estate news and trends, bookmark RISMedia.com.