Category Archives: real estate appraisal

Study: Homeowners overestimate the value of their property by 8%

Posted on June 1, 2015 | Leave a comment

Do you know what your house is worth?

Would you concede that there’s a chance that your estimate of its value might be higher than what a buyer would pay?

Contact the appraisers at www.scappraisals.com for your value questions.

A new statistical study, published in the Journal of Housing Economics, found that home owners on average “overestimate the value of their properties by about 8 percent.”

Tapping into federal databases, researchers concluded that overvaluations are likely tied to erroneous owner estimations of the capital gains they’ve accumulated in the house.

The study is in sync with a monthly survey conducted by Quicken Loans, which compares estimates provided by applicants for refinancings with results from appraisers. The latest Quicken study found a “widening gap” on average across the country between what owners think their homes are worth and actual market value. The divergence was much narrower in the Quicken survey compared with the Journal of Housing Economics findings —currently just seven-tenths of 1 percent — though in 2008 it averaged around 7.5 percent.

Nobody can blame owners for thinking optimistically about their homes’ value, right? It’s human nature. But here’s a question I recently put to real estate appraisers in different parts of the country: Other than the obvious emotional attachments that color our perceptions of our homes, where do we tend to err when it comes to estimating value?

Top of the list: Unrealistic expectations about how much the improvements you’ve made to the house will add to its resale value.

Bottom line: Without access to key data — recent sales comparables, accurate information on appreciation rates over time — it’s tough to know exactly what your house is worth. If you really want to know, consider hiring an appraiser to perform an independent valuation — they work for owners, not just lenders — or talk to multiple realty agents who specialize in your neighborhood

disclaimer: for information and entertainment purposes only

National Housing Survey Monthly Indicators

Posted on September 17, 2014 | Leave a comment

Consumer Housing Sentiment Loses Momentum as Income Growth Remains Stagnant; Indicators Support Forecast that Gradual Housing Recovery Will Continue into 2015

Americans’ attitudes toward the housing market continued to soften in August and suggest that housing activity may resume its modest recovery in 2015 after some pullback this year, according to results from Fannie Mae’s August 2014 National Housing Survey. Despite ongoing improvements in the labor market this year, consumers’ view on their income trend during the past 12 months appears to be more bearish. In addition, the share of consumers who said now is a good time to buy a home dipped for the second consecutive month, falling six percentage points since June to 64 percent – tying the all-time survey low.

“The August National Housing Survey results lend support to our forecast that 2015 will likely not be a breakout year for housing,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The deterioration in consumer attitudes about the current home buying environment reflects a shift away from record home purchase affordability without enough momentum in consumer personal financial sentiment to compensate for it. To date, this year’s labor market strength has not translated into sufficient income gains to inspire confidence among consumers to purchase a home, even in the current favorable interest rate environment. Our third quarter Mortgage Lender Sentiment Survey results, to be released later this month, are expected to show whether mortgage demand from the lender perspective is in line with consumer housing sentiment.”

Disclaimer: for information and entertainment purposes only

San Diego: Home Sale Price Increase Leveling off

Posted on June 12, 2014 | Leave a comment

Home prices in San Diego County climbed in May but at less than half the pace they did a year earlier.

Last month, the median price for a home sold in the county was $440,000, a nearly seven year high that is up 8.2 percent from $406,500 in May 2013, real estate tracker DataQuick reported Wednesday. However, that appreciation rate pales in comparison to the 21.3 percent gains seen from May 2012 to May 2013, the midst of the housing recovery. The county is now on the brink of hitting its lowest year-over-year appreciation in home prices since 7.9 percent in August 2012.

“The sort of price spikes we saw this time last year – annual gains of 20 percent or more – are less likely today given affordability constraints, higher inventory and the drop-off in investor purchases,” DataQuick analyst Andrew LePage said in a statement.

The higher median prices are also dampening sales. In May, 3,654 transactions closed, 10 fewer than in April. Typically, activity jumps in the spring and summer months, which are considered peak buying season. In May 2013, there were 4,236 transactions, 444 more than in April 2013.

“This year just isn’t rolling as fast, things are leveling off,” said Mark Goldman, a loan officer and real-estate lecturer at San Diego State University. “We’re entering into a period of a stable market that’s experiencing some sort of equilibrium. There are no particular forces that are creating incentives for sellers to sell or buyers to buy.”

Interest rates are still low — the average in May for a 30-year fixed was 4.19 percent — but Goldman noted that household incomes are flat, which hurts affordability. Inventory, still low by historical standards, hit 7,000 active listings in May for the first time since March 2012, the San Diego Association of Realtors reported separately.

Disclaimer: for information and entertainment purposes

Category Archives: real estate appraisal

Study: Homeowners overestimate the value of their property by 8%

National Housing Survey Monthly Indicators

San Diego: Home Sale Price Increase Leveling off

Follow Blog