Great Expectations
Sellers may be slightly disappointed in the appraised value of their homes, unless they live out West.
Appraisals on average are coming back nearly 2 percent lower than what homeowners expected, according to Quicken Loans National Home Price Perception Index. Western cities bucked this overall trend though, appraising significantly higher than homeowners thought they would. The highest difference between perception and reality was in Denver, where appraisals came back 3.28 percent higher than homeowners expected. San Francisco, Portland, Los Angeles, San Diego and Seattle all appraised out better than expected.
On the opposite end of the spectrum, homes in Detroit, Philadelphia and Baltimore all appraised more than 3 percent lower than what homeowners expected.
It’s not all bad news for homeowners and agents who find themselves outside the hot West. Nationally, appraised values are still growing, according to the Quicken Loans Home Value Index (which is based on appraisals, not sale prices). Home values rose nearly 0.8 percent since spring, but have grown a healthy 4.36 percent year over year—though again there are regional discrepancies. The West saw 6.21 percent growth, while the Northeast had just 2 percent growth.
“Demand for housing coupled with a lack of choice for buyers pushed home values up yet again,” Quicken Loans chief economist Bob Walters says. “This is a narrative we have heard for quite some time. Many owners aren’t moving on from their current homes, which is holding back available inventory for both first-time and move-up buyers. With values on the rise, this could prove to be an ideal time to sell—especially in the hot markets where owners could get more than they expected.”
For the latest survey and more information, visit Quicken Loans.
