U.S. homeowners continue to view their property value higher than appraisers do, while homeowners in areas experiencing rapid growth may be more likely to underestimate their home's worth, according to Quicken Loans.
Appraised values across the country were about 1.55% lower than homeowner estimates in July. The range varied in certain parts of the nation, with valuations coming in higher than homeowner expectations in some metro areas.
Some of the fastest-growing housing markets, such as Dallas and Denver, experienced the inverse of the national trend, as appraisals were higher than owner estimates. Other metro areas in the Northeast and Midwest reported appraised values lower than homeowner estimates at a rate higher than the national trend.
"The regional differences in home value growth mirror the perception difference across the country. Areas with slower growth were more likely to have owners overestimating their home value, and areas with much stronger growth had higher appraisals than owners realized they would be," said Bill Banfield, Quicken Loans executive vice president of capital markets, in a press release.
"With home values constantly changing, and the rates of change varying across the country, this is one more way to show how important it is for homeowners to stay aware of their local housing market," he said.
Despite differing opinions, both homeowner and appraiser values allude to the obvious trend of rising home prices.
Appraised values increased 0.33% from June to July, and rose 4.21% from July of the previous year. Rising home prices caused an increase in the percentage of buyers who said July was a bad time to buy.