About half of U.S. consumers expect their homes to keep rising in value this year, even with three years of increases under their belt, according to LoanDepot.
Among all U.S. homeowners with a mortgage, 46% believe their equity will increase this year, according to a survey conducted by the Irvine, Calif.-based mortgage and
Homeowners may be overly optimistic. In comparison, about 100 U.S. housing experts forecast home values will average annual growth rates of 3.65% this year. The past three years have also seen about 60% of homeowners report an increase in equity in their homes.
Even so, many homeowners underestimate the amount of value their homes have gained through the housing recovery.
"Homeowners who bought during the housing boom are regaining equity many thought was lost forever, yet too many are not aware of the equity they have gained or they are unclear about how to determine changes in their equity," Bryan Sullivan, loanDepot's chief financial officer, said in a news release.
