Consumers still too optimistic about home values
Appraisals continue to disappoint homeowner expectations in August, though the difference of opinion between appraiser and owner has narrowed, according to the Quicken Loans National Home Price Perception Index.
Appraised values were 1.35% lower than homeowners estimated in August, a slightly tighter gap than in July when there was a 1.55% difference.
Value perceptions varied considerably across the nation, with home values being 3% higher than homeowners anticipated in the West, to 3% lower than expected in the Midwest and Northeast.
"One of the biggest lessons from the HPPI is highlighting how regionalized real estate is," said Bill Banfield, Quicken Loans executive vice president of capital markets, in a press release.
"Homeowners who have a better understanding of their local housing market can make more informed decisions about their home. After all, their house is not just where they live, but one of their bigger assets," he said.
Appraised values were 2.9% higher than homeowner perceptions in Dallas, and 3.05% lower than homeowners estimated in Philadelphia.
Home values grew again in August, but at the slowest pace this year. They rose 0.19% month-over-month, and increased an average of 2.64% from August of last year.
Values rose 0.16% in the Midwest, and 1.34% in the West. They declined slightly in the South and East, dipping 0.52% and 0.58%, respectively.
"As the sun sets on the summer, some of the intense competition for housing also winds down," said Banfield.
"While there can be some monthly variations in the data, especially as seasons start to change, the annual numbers show healthy growth across the country," he said.