The gap between appraisal and owner estimates widened for first time in six months, Quicken Loans said in its latest monthly Home Price Perception Index and Home Value Index for February.
However, the rise is still small, and the HPPI is still at a healthy level.
“While it is always disappointing for homeowners to learn they don’t have quite the home equity they expected, the national HPPI is still within a normal range,” said Quicken Loans Chief Economist Bob Walters. “In an ever-changing real estate market, home values fluctuate and these changes are most quickly realized by appraisers who are evaluating local sales every single day.”
Homeowners’ estimates of their homes’ value exceeded appraiser estimates by an average of 1.99% in February, according the national HPPI.
“Home prices continue their long march back from the big price drops experienced in the financial crash. As more and more Americans gain equity, this increases the number of homeowners who are financially able to sell their home and buy another one. We’re seeing the benefits of this virtuous cycle in rising home prices, which is also being greatly aided by historically low mortgage rates,” he added.