The gap between what homeowners believe their home is worth and what the actual value is widened for the fifth consecutive month.
Appraised property values came in 1.9% lower than what homeowners expected, according to April's Quicken Home Price Perception Index. It is the largest gap since last June, when the spread was at negative-1.93%
In April 2016, homeowners overestimated their property's worth by 1.95%.
Values rose 1.06% between March and April and they are 5.08% higher than in April 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 2.72% higher than expected, followed by Dallas, 2.55%; Portland, Ore., 1.44%; Seattle, 1.32; and San Francisco, 1.1%.
"Home values were pushed higher once again by the demand for housing outpacing the stock of available homes. This effect is intensified by the start of the spring buying season. While sellers are obviously thrilled as their investment continues to grow in value, this trend could make homebuyers set their sights on smaller homes or less pricey neighborhoods," said Bill Banfield, Quicken Loans vice president of capital markets, in a press release.
