Homeowner estimates getting closer to appraised value, says Quicken Loans

Home values grew 7.78 percent annually in September
  • The HPPI gauges how much homeowners are overestimating (-) or underestimating (+) their home values.
  • The HPPI has narrowed for three consecutive months, reaching -1.26 percent in September.
  • West Coast markets like San Francisco and San Jose show appraisals over 2 percent higher than homeowner estimates.

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Earlier this week, retail mortgage lender Quicken Loans released its Home Price Perception Index (HPPI) for September, revealing average homeowner estimates were coming in 1.26 percentage points higher than actual appraised values. Although homeowners are slightly miscalculating, the HPPI has diminished over the past three months. Last month, the HPPI was at 1.56 percent. Although the two sides are beginning to balance on a national scale, many homeowners remain overly optimistic. Homeowners in Baltimore and Chicago priced their properties over 2 percent higher than actual appraised value in September, the report shows, driving a negative HPPI in the metros. PRNewsFoto / Quicken Loans Meanwhile, in San Francisco and San Jose, homeowners undervalued their properties by over 2 percent each, producing a positive HPPI. "When reading about the health of the economy, many consumers don't take into account how varied housing markets can be," Quicken Loans chief economist B...