Homeowners continue to give their properties a higher valuation than appraisers would, according to Quicken Loans.
The mortgage lender's Home Price Perception Index for September indicates that the gap between homeowners' and appraisers' evaluations stood at 2% last month, compared to
Overblown home value perceptions may harm homeowners seeking to eliminate their mortgage insurance or to refinance their mortgages, particularly if their loan-to-value ratio is near qualifying thresholds.
"We encourage consumers to stay aware of sales prices on comparable homes in their area to have a better idea of their home's value," said Bob Walters, the chief economist at Quickens Loans, in a Tuesday
Meanwhile, home values have barely budged, increasing by 0.05% between August and September. On an annual basis, home values rose 3.11%, compared to 3.24% in August, according to Quicken Loans' Home Value Index.
But home value trends varied across different regions. While the West showed strong home value growth in September, 0.72% since August and 6.03% year-over-year, the Northeast and Midwest saw decreases in both metrics.
This could also help explain why the HPPI index is geographically uneven.
"Homeowners are hearing national reports of slower home value increases, or even drops in value, when that isn't the case everywhere," said Walters. "Appraisals are telling a different story in many Western cities but homeowners may not realize home values are still making such strides."
