Homeowners continue to overvalue their homes, in comparison to what appraisers believe, although the gap has narrowed for three straight months, according to Quicken Loans.
Appraiser opinions of home values were, on average, 1.87% lower than homeowners' estimates, according to Quicken's Home Price Perception Index for November. That was a slightly narrower gap compared to October.
Homeowners are getting ahead of themselves and giving their homes more credit than they deserve, Quicken said.
"Home value increases are moderating in much of the country, causing homeowners to be overly optimistic about their property's value," Bob Walters, Quicken's chief economist, said in a news release.
The widest gap between appraisers and homeowners in July was in Philadelphia, where appraisers' value was 3.33% lower than homeowners' perceptions. Baltimore had the second-widest gap at 2.82%, followed by Chicago, Kansas City, Mo., and Detroit.
Homeowners' estimates were 5.15% lower than appraisers' values in San Jose, Calif. Denver was second at 4.31%, followed by San Francisco, Dallas and Houston.
