The gap between what homeowners think their homes are worth and what appraisers estimate their value to be widened for the third straight month in April, according to a new study from Quicken Loans, the nation’s second-largest retail mortgage lender.
Nationwide, appraiser home estimates were 0.69 percent below homeowners’ estimates, a widening of 0.29 percentage points from April’s gap of 0.4 percent, according to the lender’s home price perception index (HPPI).
The HPPI compares the estimate that homeowners put on their mortgage applications to the appraisals that are performed later in the mortgage process.
“While it is not surprising to most appraisers that homeowners 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 homebuyers and those looking to refinance,” said Quicken Loans Chief Economist Bob Walters in a statement.
The perceptions of home values may have grown further apart in April, but appraisers’ assessments of home values nationwide increased 0.28 percent over March’s value and 5.54 percent over April a year ago, according to the Quicken Loans home value index. The index is built from appraisal data from home purchases and mortgage refinances.
