Disparity grows between New York City homeowners and appraisers

Although perceptions are higher than appraisal values, economists say gap falls within normal range
  • NYC had assessments that came in only .86 percent less than homeowner value in Feb 2015.
  • Home values across NYC grew 8.9 percent over the past year to reach $612,400, according to Zillow’s Home Value Index.
  • Correspondingly, national home values rose 1.51 percent monthly and 3.89 percent year-over-year.
  • The West led the study in highest appraisal values over homeowner estimates.

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New York City homeowners are becoming increasingly removed from the true value of their properties, according to the Quicken Loans Home Price Perception Index (HPPI). Although national appraiser value versus homeowner perception is still within normal variance at -2.14 percent, the growing year-over-year trend indicates a wider gap of opinion as compared to last February. NYC had a much closer consensus, with assessments that came in only 0.86 percent less than homeowner value in Feb 2015. Why do homeowners see more value than appraisers? “I think what’s notable, is that versus a year ago, the optimism by homeowners -- they think the value is worth more. Inside of a couple percent, I wouldn’t read too much into that, but if that trend continued, then I’d ask the question again: Why do the homeowners see it more than appraisers, and why would that be trending higher?” said Bob Walters, chief economist at Quicken Loans. [graphiq id="bo4kGfQMW3z" title="U.S. Homeowne...