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The Week Ahead: Differing Opinions Between Appraisers, Homeowners

appraisal-twoHistory has shown that homeowners typically value their homes at a higher price point than appraisers, and as the housing market evolved, these opinions were beginning to inch closer to reaching a point of equilibrium but that has since changed. Will appraiser and homeowners find common ground this week?

According to the most recent Home Price Perception Index (HPPI) by Quicken Loans, on a national level, the Index revealed that in March, home values as determined by appraisers were actually 2.17 percent lower than what homeowners expected. That’s a wider gap than in February, when appraised value was just 1.99 lower than the homeowner’s expectation.

“The varying HPPI values across the country illustrates the importance of examining the market at the local level,” said Bob Walters, Chief Economist for Quicken Loans. “If homeowners are eyeing that new home being built across town, they could be pleasantly surprised how much their home will sell for—or in some instances their equity may not take them as far as they think—depending on what area of the country they’re in.”

Like the HPPI, the HVI showed some distinct differences in regional data. In the Midwest, appraised values saw a 0.69 percent drop, while the West experienced a 1.52 percent increase over the last month. All four regions of the U.S. saw increases at an annual level.

“It’s not always easy for homeowners to keep their finger on the pulse of their equity,” Walters said. “This data shows homes have continued to increase in value since the depths experienced after the last recession. Those increases mean far fewer Americans have negative equity in their homes. This increases their mobility and is a positive development for all segments of the housing market.”

Here is the lineup for the week:

Monday, May 9, 2016

Charles Evans Speaks- 5:10 A.M. EST

Chicago Federal Reserve Bank President Charles Evans participates in panel at the International Financial Services Forum in London.

Tuesday, May 10, 2016

Quicken Loans' Home Price Perception Index

Neel Kashkari Speaks- 1:00 P.M. EST

Minneapolis Federal Reserve Bank President Neel Kashkari will give a speech to the Economic Club of Minnesota.

Wednesday, May 11, 2016

MBA Mortgage Applications- 7:00 A.M. EST

Thursday, May 12, 2016

Loretta Mester Speaks- 11:00 A.M. EST

Cleveland Federal Reserve Bank President Loretta Mester will speak on monetary policy in Reichenau Island, Germany.

Eric Rosengren Speaks- 11:45 A.M. EST

Boston Federal Reserve Bank President Eric Rosengren will speak in Concord, New Hampshire.

Esther George Speaks- 2:15 P.M. EST

Kansas City Federal Reserve Bank President Esther George speech on the economy, in Albuquerque, New Mexico.

Friday, May 13, 2016

John Williams Speaks- 6:45 P.M. EST

San Francisco Federal Reserve Bank President John Williams will give a speech on the economy in Sacramento.

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