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Tight Hudson Valley real estate inventory brings sellers and bankers closer together in evaluating home prices.

Wednesday, January 24, 2018   /   by Sharon Pehush

Tight Hudson Valley real estate inventory brings sellers and bankers closer together in evaluating home prices.

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In the Hudson Valley real estate market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

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

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% 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 two years.

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Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Bottom Line 

This sage advice from Mr. Banfield for sellers to "find out how their local markets have been impacted by supply and demand" may be all well and good for the banker who gets daily reports on every wiggle in house values. But for the average homeowner, there is no "Kelly's Blue Book of House Values Adjusted Daily for Everywhere." Online services like Zillow, HouseValue.com or PennyMac are all over the web, but all carry a disclaimer that their valuations are just estimates. They are also rife with errors, not just in pricing but in factual matters, from recent sale prices, down to facts as simple as the correct addresses of homes valued. Our best advice for homeowners looking for an accurate sense of how their particular market has changed? Ask the person with boots on the ground in their neighborhood or town. Find a Realtor. One that they know and trust. No algorithm has a better sense of what's going on in your neighborhood than a real estate professional. Global Property Systems has agents who are trained home value advisers, ready to help sellers price their properties right.


To reach a GPS agent, or for any questions regarding this article, contact Vanessa Saunders, Broker, Owner and CEO of Global Property Systems at 845-848-2218, or email her at vanessa@gpshousehunt.com.


  hudson valley real estate, hudson valley property, housing sales inventory, hudson valley home

Global Property Systems
Vanessa Saunders MBA MIMC CIPS - NYS RE Principal Broker
56 Lafayette Avenue Suite 320
White Plains, NY 10603
914-290-5258

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The information appearing herein has not been verified by the Hudson Gateway Multiple Listing Service, Inc. or the Hudson Gateway Association of Realtors, Inc. or by any individual(s) who may be affiliated with said entities, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose.

©2019 Hudson Gateway Multiple Listing Service, Inc. All rights reserved.

The data relating to real estate for sale or lease on this web site comes in part from MHMLS. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the MHMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker. The information appearing herein has not been verified by the Mid-Hudson Multiple Listing Service, Inc. or by any individual(s) who may be affiliated with said entity, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose. ©2019 Mid-Hudson Multiple Listing Service, Inc. All rights reserved.
The data relating to real estate on this website comes, in part, through the IDX of the Multiple Listing Service of Ulster County, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the IDX logo and detailed information about them includes the name of the listing broker.