Jun 4 2019 63795 1

Dated: 06/04/2019

Views: 162

In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.

In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.

Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).

The chart below illustrates the changes in home price estimates over the last 12 months.

2 Things You Need to Know to Properly Price Your Home | Keeping Current Matters

While the appraisal gap widens, another trend is also becoming more common.

According to realtor.com, “the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions.

In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!

Bottom Line

If you are planning on selling your house in today’s market, meet with a local real estate professional who can help you set your listing price properly from the start!


If you want information on what your home is worth TODAY in our market, send me you address and email and I'll prepare a comparative market analysis or lets meet to discuss the market at what I can do to get your home sold for the most amount of money and netting you an amount that's most important in any market. 

Want to Advertise on this Site?

Latest Blog Posts

HIGHER INCOME LIMITS FOR USDA LOAN

NEW INCOME LIMITSRural Development has announced as of today, 7/22/19, income limits for the Single Family Housing Guaranteed Loan Program have been updated.‍You can now make up to $114,650 in

Read More

5 Ways To Make Your AC Dollars Go Further

The aqua jeweled waters of the Caribbean pared with lush, jungle-like vegetation that seems to stretch along the beach forever greet you every single summer. It’s amazing, really, and you hope

Read More

Jun 4 2019 63795 1

In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of

Read More

Coming Soon Verona

128 S Verona Dr, Madisonville 4 bed 2 bath | 1885 sf | $255,000Call us at 985.727.7168 for more details!Sneak peek of this beautiful home coming soon in Tuscany West Estates! Features a large &

Read More