Greenville NC: Real Estate Appraisals Behind Perceived Home Value

Quicken Loans, the nation's second largest retail mortgage lender, today announced appraisals lagged behind what homeowners estimated by 1.26 percent in September, according to the company's national Home Price Perception Index (HPPI). This is a slight move toward equilibrium after a 1.56 percent gap between perceptions in August. September marks the third time in as many months the HPPI has moved closer to agreement between homeowners and appraisers. North Carolina, and Greenville with Pitt County, in particular reduce the gap further.

Nationally, home values made a slight dip in September, as measured by Quicken Loans' Home Value Index (HVI). Average appraisals fell 0.25 percent from August, but increased a robust 7.78 percent since September 2015. Quicken Loans' HPPI, the only comparison of home value perception differences between homeowners and appraisers, showed while homeowners are still a bit more optimistic, the two are moving closer to agreement.

In September the national HPPI reported homeowner expectations were an average of 1.26 percent below actual appraised home values. The national HPPI average does not reflect the reality in all areas of the country.

For instance, the fast growing markets of Denver, San Francisco and San Jose had appraised values higher than what homeowners estimated. On the flipside, in Philadelphia, Baltimore and Chicago, appraisals were lower than what homeowners believed they would be. "When reading about the health of the economy, many consumers don't take into account how varied housing markets can be," said Quicken Loans Chief Economist Bob Walters. "If a homeowner in Philadelphia hears about the housing boom out west, they could be surprised when their home doesn't sell at the price they thought it would. I encourage homeowners to work with real estate agents, lenders and other experts to determine their home's value." Via PRNewswire.com