Homeowners priced their homes 1.47% higher than the appraised value in January, according to the National Home Price Perception Index from Quicken Loans.
This is a wider gap than December’s 1.33% difference, and the second month of widening after six months of homeowners coming closer to agreeing with appraisers on the price of their home.
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(Source: Quicken Loans)
Appraisal values remained flat in January, and only slipped by 0.34%, the index showed. However, appraised home prices did increase 3.93% annually.
“Tight inventory has been a key contributing factor to the year-over-year growth in home values,” Quicken Loans Chief Economist Bob Walters said.
“This steady growth could very well lead to more availability, driving homeowners to consider cashing in on their growing equity by putting their home on the market,” Walters said. “When this happens, it will open up new opportunities for eager buyers.”
This difference is more pronounced in some markets. In Denver appraised values cam in 2.98% higher than homeowners’ expectations, while in Philadelphia appraised values were actually 2.94% lower than what homeowners estimated.
“Having a good understanding of the conditions in their local housing market can be a valuable tool for consumers as they prepare for the home buying or mortgage process,” Walters said.
“Accurate expectations at the onset of the mortgage process, not only makes it smoother, but can prevent unexpected changes in the amount of funds to bring to the closing table if the appraised value comes in lower than initially estimated,” he said.
This chart breaks down the difference between the appraised values and homeowners estimates in different markets across the U.S.
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(Source: Quicken Loans)
