Real Estate

Homeowners getting warmer when it comes to pricing their home

Perceived home price grows closer to appraised value

Homeowners continue to struggle with regards to estimating their home value, but they’re getting warmer.

They are now pricing their homes 1.15% higher than the appraisal value in October, according to Quicken Loans’ Home Price Perception Index. While homeowners are still pricing their homes too high, the gap narrowed from last month.

A report from Quicken Loans shows that the Home Value Index, a measure of home valuation based solely on appraisals, decrease 0.62% monthly in October, but still increased 5.97% from last year.

Click to Enlarge

hppi

(Source: Quicken Loans)

This marks the fourth consecutive month that the homeowner’s expectations grew closer to the appraised value.

“The monthly dips in home values are likely a result of the cooling demand for housing during the autumn months,” Quicken Loans Chief Economist Bob Walters said. “Fluctuations in monthly numbers are expected.”

“Attention should always be paid to the annual measures to ensure positive growth compared to the same season the previous year,” Walters said. “The yearly measure in October continues to show strong growth and a positive outlook for housing.”

This chart shows the HPPI divided by metro areas:

Click to Enlarge

hppi

(Source: Quicken Loans)

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