According to Quicken Loans’ Home Price Perception Index, November’s average home appraisals were 1.87 percent less than expected. This was the tenth month homeowners expected values exceeded appraised values. Along with this disappointment, the average home prices across the country continued to rise.
November is the third month the difference between homeowner and appraised estimates became tighter. In many metro areas, appraised values were more than what western homeowners expected. Eastern and midwestern locations are displaying similar results to the country’s index. In these areas, appraisals fell below homeowner expectations.
After examining the HPPI values, a variation is evident. This reminds people the real estate market is extremely localized. Economists explain when home values leap forward in the western part of the country, it takes time for homeowners to recognize their gains. If you live in other parts of the United States, you may see home values moderating. This may leave you overly optimistic about your property value.
The average home value in the United States is climbing at a good pace. From October to November 2015, values jumped 1.08 percent. From November 2014, values increased by 4.84 percent. Even though the South enjoyed the highest home value growth over the last month, the West experienced the highest increase in appraised values for the year.
As the economy gets better and more people strive to own homes, values are sure to continue climbing. However, gains are not the same. In certain areas, demand is high, which leads to advanced increases in home values. Since other markets are balanced, results are steadier.
