Appraisers and home owners' perceptions of home values are growing farther apart, according to Quicken Loans' latest Home Price Perception Index.
The index, reflecting April data, shows home owners are overestimating the value of their homes by 0.69 percent when compared to appraisers' values. This is the third consecutive month in which appraiser opinions fell below home owner estimates.
"While it is not surprising to most appraisers that home owners are overestimating their home's value on a national average, we should always make note of the direction the trend is heading to help set expectations for home buyers and those looking to refinance," says Quicken Loans Chief Economist Bob Walters. "There is nothing more disappointing to a home owner than learning that the value of their home is less than they expected."
The index shows that appraisers' opinions were below home owners' in the Northeast (0.58 percent), South (0.7 percent), and Midwest (1.23 percent). In the West, appraiser opinions were 0.08 percent higher than home owners. That was also true in metro areas such as San Jose, where appraiser opinions were 6.73 percent higher than home owners, San Francisco (5.47 percent) and Denver (4.09 percent).
On the other hand, home owners in Kansas City, Mo., tended to overestimate the value of their homes by the most in the country — 2.96 percent — compared to appraisers' values, followed by Philadelphia (2.02 percent) and Charlotte, N.C. (1.4 percent).