Real Estate

Homeowners nearly hit the mark on estimating home prices

Now just 1% off from appraised values

Homeowners are getting better about estimating their home’s value for the fifth month in a row, according to Quicken Loans Home Price Perception Index.

Homeowner perceptions were just 1% higher than appraiser opinions in November. This is after appraised home values increased by 0.42% from October and 5.28% from last year.

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hppi

(Source: Quicken Loans)

Homeowners have been narrowing the gap between their opinion and the appraised value since April this year.

“The HPPI compares the perceived gap between the homeowner’s and the appraiser’s opinion of home values and has provided an intriguing look into the psychographics of our housing market,” Quicken Loans Chief Economist Bob Walters said.

“The most recent HPPI indicates homeowners and appraisers are closer to agreeing at the end of 2016 than they were at the start of the new year,” Walters said. “It’s our hope that with this information the only surprises this holiday season are the ones wrapped under the tree.”

Though this year had its ups and downs, the overall trend showed an increasing home price, according to Quicken’s National Home Value Index.

“Home values pushed higher throughout 2016, largely driven by lack of supply in the hottest markets,” Walters said. “It’s yet to be seen if these increases will continue or wane as homebuilding grows, boosting inventory.”

Click to Enlarge

hppi

(Source: Quicken Loans)

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