Homeowners continue to have an overinflated sense of the value of their homes, at least compared to the opinion of professional appraisers, according to Quicken Loans.
The average opinion of appraisers on home values was 1.8% lower than homeowners' estimates, according to Quicken's Home Price Perception Index for December. That was
Homeowners are moving in the right direction, although they are still being too optimistic, Quicken said.
"The more homeowners are in line with appraisers, and understand the equity in their home, the easier it will be to refinance their mortgage," Bob Walters, Quicken's chief economist, said in a news release.
The widest gap between appraisers and homeowners in December was in Philadelphia, where appraisers' value was 3.5% lower than homeowners' perceptions. Baltimore had the second-widest gap at 3.04%, followed by Chicago, Detroit and New York.
Homeowners' estimates were 4.99% lower than appraisers' values in San Jose, Calif. Denver was second at 4.26%, followed by San Francisco, Dallas and Houston.
Home values rose 0.18% in December, compared to the previous month; they rose 5.81% on a yearly basis. Values are rising as housing supply trails demand, Quicken said.
