Appraisers and homeowners at growing odds on property values: Quicken
The gap in home price perception between appraisers and property owners widened in April, reaching its greatest spike in four years, according to Quicken Loans. At the same time, home values continued climbing.
Appraisers came in 0.87% lower than homeowners' average estimate, a change of 9 basis points from March and a growing divergence since November 2018. The Northeast had the largest discrepancy in home appraisals, at 0.94% lower.
"The continued widening of the gap between homeowners' and appraisers' viewpoints is evidence of just how hard it can be to keep your finger on the pulse of local housing, especially at the onset of home selling season," Bill Banfield, Quicken Loans executive vice president of capital markets, said in a press release. "I encourage homeowners to keep a close eye on the homes selling around them. This can help them to be more realistic when estimating the value of their home to refinance or sell."
Regionally, the Midwest's home values increased the most year-over-year, jumping 5.33%. The South followed at 5.12%, with the Northeast next at 4.81% and the West last with a 3.87% gain. The Midwest also posted the largest month-over-month increase at 2.11%, while the Northeast had the smallest, rising 1.16% from March.
"Demand for housing is high this spring. The strong economy is leading more to look for a home, but the persistent low inventory keeps home values rising across the country," said Banfield. "These new, higher levels are helping homeowners who are selling or accessing their equity, but the higher prices can make buyers reevaluate their budgets before heading out to open houses."