More homeowners value their homes higher than appraisers

For the sixth consecutive month, homeowners are likely to overestimate their home’s value, according to Quicken Loans.

In July, homeowners were more likely to believe their houses were worth 2.33 percent more than an appraiser’s opinions, according to Quicken Loans’ national Home Price Perception Index (HPPI).

According to the report, the gap between homeowner estimates and appraiser opinions of the home’s value in July was almost twice the gap between the values in May.

“Many homeowners around the country are seeing the national headlines about home value increases and they are optimistic about their equity increasing,” said Quicken Loans Chief Economist Bob Walters. “While some areas are seeing the same level of home appreciation, or even more, there are also some areas that have slower home value increases. This can lead to homeowners and appraisers not quite seeing eye-to-eye.”

In July, the largest gap between appraisers’ and homeowners’  opinions of value was in Philadelphia, where appraisers’ valued homes at 3.03 percent lower than homeowners’ perceptions. However, that is an improvement from July 2014, when homeowners overestimated the value by 3.47 percent.

Quicken Loans’ Home Value Index (HVI), a measure of home values based on actual home appraisals, reported national housing values were “nearly flat, with a 0.27 percent drop in value.” However, since July 2014, the index showed a 3.89 percent value growth across the country.