The disparity between homeowners and appraisers in America is shrinking at a rapid rate - in many metro areas, appraisals are up even higher than what owners expected. Between five years ago and now, the gap between opinions was approximately 5 times larger than the current 0.34% difference.
Both perceived and actual home values have been steadily improving. Quicken Loans’ National Home Value Index (HVI) reported 0.71% growth, and a 6.56% growth in appraisal values in May.
“Real estate is incredibly local, from style preferences to the direction of the market and everything in between,” said Quicken Loans Executive Vice President of Capital Markets, Bill Banfield. “Our hope is that this report can help homeowners realize that national headlines don’t always apply in their community. It’s important homeowners talk to real estate or mortgage experts who have experience analyzing their community when they’re thinking of selling, or utilizing their home’s equity.
“As we hit peak real estate season, the number of eager buyers continued to outpace the number of homes that were available, which has led to surges in appraisal values across the country and especially in the Northeast,” Banfield said. “The only remedy is to accelerate the pace of construction to fill this need.”