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Homeowners and Appraisers Still Cannot Agree on Valuations

May 10, 2017
The Independent Community Bankers of America (ICBA) has become the latest trade group to offer a white paper offering a strategy to resolve the future of the government-sponsored enterprises (GSEs)

The difference in opinions between homeowners and appraiser regarding home values has widened further, according to new data from Quicken Loans.
 
Last month, Quicken Loans determined that appraisals were an average of 1.90 percent lower than what the owner expected, up from the 1.77 percent disparity recorded in March. April marks the fifth consecutive month where the gap between appraiser opinions and homeowner estimates of home value continued to drift further apart. However, the company’s National Home Value Index found home values rose 1.06 percent from March to April while increasing 5.08 percent year-over-year; in March, the year-over-year increase was 3.30 percent.
 
“Home values were pushed higher once again by the demand for housing outpacing the stock of available homes. This effect is intensified by the start of the spring buying season,” said Bill Banfield, vice president of Capital Markets. “While sellers are obviously thrilled as their investment continues to grow in value, this trend could make homebuyers set their sights on smaller homes or less pricey neighborhoods. I would encourage homeowners who are considering listing their home to take advantage of the opportunity they have in this sellers’ market.”
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