Home values are increasing, but just not at the pace property owners believe they are.
Appraised property values came in 1.77% lower than what homeowners expected, according to the March Quicken Home Price Perception Index. It is the fourth consecutive month where the gap has widened. It is also the largest gap since last June, when the spread was at negative-1.93%.
In March 2016, homeowners overestimated their property's worth by 2.17%.
Values rose 0.63% between February and March and they are 3.3% higher than in March 2016, Quicken said.
However, in several major markets, appraised values are actually higher than what homeowners believe. This includes Denver, where the appraised value is 2.69% higher than expected, followed by Dallas, 2.25%; Portland, Ore., 1.77%; San Francisco, 1.31%; and Seattle, 1.31%.
"Real estate signs are beginning to pop up, even before leaves appear on the neighborhood trees. As home selling season gets started across the country, enthusiastic buyers are battling for available homes," said Bill Banfield, Quicken Loans vice president of capital markets, in a press release.
"The increased attention to home sales has led to more competition for a relatively small inventory of homes, continuing to fuel the rising prices."