New Home Value Indicies Show Owners Over-Value Homes during a Crisis

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Quicken Loans released two new indices, the ‘Home Value Index’ and the ‘Home Price Index,’ as depicted in the graph above.  These indices reveal that homeowners overvalue their homes in times of economic crisis. This can be seen in the graph where home values are significantly overstated by homeowners during the 2008-09 financial crisis. The opposite effect is seen when the market is rebounding:  homeowners tend to undervalue their homes.

–From Quicken Loans Press Room

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