Although home prices are on the rise, even hitting highs in some markets, they are not quite as high as homeowners think they are, according to the National Home Price Perception Index released by Quicken Loans, a retail mortgage lender.
The HPPI found that appraisers valued homes at an average of 1.69% lower than what homeowners expected in July.
This is a smaller gap than June, when appraisers valued homes at 1.93% below homeowner expectations.
That being said, home values also increased in July, according to the Quicken Loans Home Value Index. The national index, based solely on appraisals, showed an increase in home prices of 1.43% from last month, and 6.24% from last year.
Contrary to the national trend, homeowner perception has not kept up with rising home values in the west. Appraised values were higher than homeowners estimated in Western cities including Denver, San Jose and San Francisco, by as much as 3.1%, 2.52% and 2.36% respectively.
“One of the most important things for consumers to take away from the HPPI is just how regionalized housing truly is,” said Quicken Loans Chief Economist Bob Walters. “While those on the West coast are being surprised by their high appraisals, homeowners in the Northeast and Midwest are more likely to be shocked by their low values.”
“If homeowners keep an eye on local home sales, they can be better aware of their current home value and not be shocked when they go to sell or refinance,” Walters said.