Dive Brief:
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Home values all over the country climbed by 2.03% between September and October and 3.35% since last October.
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Nearly 90% of metropolitan areas posted increases in home values over the past year, according to Quicken Loans’ October 2014 home value index. The steepest increases were in the South and Northeast, and the smallest were in the West and Midwest.
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Quicken Loans Chief Economist Bob Walters Wednesday called the increases a “healthy momentum. … In most markets, home values are making up the ground they lost during the recession.”
Dive Insight:
It seems homeowners aren’t as optimistic as appraisers are about how much their homes are worth. Quicken Loans’ Home Price Perception Index revealed that appraisers valued homes 1.58% higher than homeowners estimated, a slighter discrepancy than a year ago.
Still, that number indicates homeowners aren’t aware of local home values, which could prevent some from selling or applying for home equity loans when the market is ripe. “While everyone would like to be pleasantly surprised to find that appraisers think their home is worth more than they thought, in reality, it is best for homeowner estimates to be as close as possible to appraiser estimates,” Walters explained.