The average appraised values in December were 1.8% lower than what homeowners’ valued their home, according to Quicken Loans, but the gap between the two have narrowed, reports HousingWire staffer Cynthia Barraza.
December is the 11th consecutive month where appraised values were lower than homeowners expected, although December marks the fourth month the gap between the two values have narrowed, according to Quicken Loans’ Home Price Perception Index.
The narrowing of the perceived vs. appraisal value gap is an excellent way to end the year,” said Quicken Loans Chief Economist Bob Walters.
“The more homeowners are in line with appraisers, and understand the equity in their home, the easier it will be to refinance their mortgage. In the same vein, if homebuyers understand how the local market is performing, they will be better equipped to come in with a strong offer on the home of their dreams,” added Walters.