Dive Brief:
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For the first time in 10 months, the average value of an American home fell slightly in December. Still, home values have increased 2.26% over the past year, Quicken Loans reported this week.
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The report also noted that homeowners have improved at estimating the value of their property. The Quicken Loans Home Price Perception Index, which measures the difference between homeowner and appraiser opinions about a home's worth, showed that appraiser values are 1.43% higher than owners’. For six consecutive months, homeowner and appraiser estimates have been closer than they were during the previous month.
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Among the 77% of the metro markets included in the index, homeowners and appraisers in Baltimore and Chicago were closest in their estimation of the value of each home.
Dive Insight:
Homeowners who have a realistic grasp of the value of their homes are more likely to plant their “for sale” signs at the right time and price their property at a level that could move it quicker than if it were overpriced.
A greater understanding of home prices has come as home values stabilized over the past few months. When prices fluctuate dramatically, and when bidding wars—which often are short-lived—erupt in local markets, homeowner perception of how much their houses are worth can be skewed.