Homeowners are Becoming More Accurate at Predicting Home Value
September 1, 2023
We’ve been reporting on the discrepancy between what homeowners believe their home is worth and actual market value for several years. During that time the trend of homeowners overestimating their home’s value held steady, as it had been doing for years. According to a June 2020 article published in the Journal of Housing Economics, “… in most scholars’ opinion, dwelling owners tend to overvalue their properties by about 5%.” Recently though, we’re seeing an interesting deviation from the tendency of homeowners to be overly optimistic about potential sales prices – to now underestimating the market value of their home by an average of 0.77% – a difference determined by comparing homeowner opinions with appraiser estimates. A Shift in Homeowner Perception...