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Do you know how much your home is worth? If you’re like most homeowners, you can provide a fairly accurate estimate of your home equity. To those who underestimate the value of their homes, discovering the true price is a welcome surprise, but what if you found out your home isn’t worth nearly what you had anticipated?
Quicken Loans recently released its monthly Home Price Perception Index (HPPI) and Home Value Index (HVI) for February revealing that current home appraisals fall significantly short of homeowner estimates. Despite these findings, the mortgage lender’s chief economist Bob Walters assures that the national HPPI resides within normal levels notwithstanding its modest growth.
The HPPI shows that homeowner estimates in February surpassed actual home appraisals by an average of 1.99 percent. The index further discloses that Denver, San Francisco, Dallas and Portland are the cities in which homeowners overshot their true home values by the widest margins, and in Chicago, Detroit, New York and Charlotte, homeowners underestimated their home equities the most.
On a national level, average home equity rose 1.51 percent in February, up 3.89 percent from just a year ago. The Midwest was the region with the most home price appreciation, with a 3.37 percent increase.
Driven by enlivened buying activity and a persistent lack of inventory dilemma, home prices are increasing, albeit not always at the perceived speed. Coupled with accessible mortgage rates and the increasing desire to buy, this sluggish increase rate could provide buyers with the right conditions to purchase their homes.
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