Owners are continuing to overestimate the value of their homes. The latest Quicken Loans’ Home Price Perception Index shows that home owners overestimated the price of their home, on average, by 1.95 percent compared to appraisers valuations in April.
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Home owners in the Midwest and East coast are overestimating their home’s value by the highest amounts, according to the HPPI.
The gap between home owner and appraiser expectations narrowed last month. In March, appraiser opinions of home values were 2.17 percent lower than home owner expectations.
“The HPPI is in a healthy trend, nationally,” says Quicken Loans Chief Economist Bob Walters. “While everyone wants their appraisals to come back showing more equity than anticipated, like some home owners in the West, the discrepancy we are seeing now won’t likely derail a mortgage transaction.”
Source: Quicken Loans
Reprinted from REALTOR® Magazine Online (http://realtormag.realtor.org), May 16, 2016, with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2016. All rights reserved.