The hottest markets in the West Coast are booming faster than those living there can appreciate, according to a new report from Quicken Loans. This makes it tough for anyone who wants to jump into the housing market but is welcome news for people who are rapidly building equity in their home.
Quicken Loans’ national Home Price Perception Index shows American homeowners’ expectation of their home’s value versus the actual appraised value. In May, on a national level, home appraisals were an average of 1.89% lower than what homeowners were expecting.
This chart shows the National Home Price Perception Index.
Click to enlarge
(Source: Quicken Loans)
However, it’s a completely different story in western cities. Denver, San Francisco, Dallas and Los Angeles each reported that appraisals were higher than what homeowners expected. It’s these same cities that keep making top housing market lists.
This chart shows the changes in perception based on the city.
Click to enlarge
(Source: Quicken Loans)
“The hot housing markets along the West Coast are growing quicker than owners realize, giving way to higher than expected prices for buyers and more home equity for existing owners,” said Quicken Loans Chief Economist Bob Walters.
“On the other hand, the housing markets are more balanced in the East and Midwest, leading owners to be slightly over-enthusiastic about their home’s appreciation,” said Walters.
