Markets & Economy

Quicken’s appraised vs. perceived value gap widens

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Several indices compiled by Quicken Loans point to a national housing market that is well into the stabilization cycle. The firm’s Home Price Perception Index -- which compares the estimates homeowners supply on mortgage applications to the actual appraised value -- fell by 1.4 percent in June. This indicates that the gap between appraised value and homeowner-perceived value is widening, something that has occurred for five straight months. “While each local market has a different story to tell, a large part of this perception gap is likely due to the normalization of home prices,” said Bob Walters, chief economist for Quicken Loans. “After about a year of home values trending upward, it takes some time for many homeowners to realize home values are stabilizing in their neighborhoods.” Markets where the gap between appraised value and perceived value widened the most in June included Kansas City, which saw a 3.19 percent expansion. Philadelphia and Charlotte ...