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A perfect neighbourhood. Houses in suburb at Spring in the north America.

Appraisal values continue to lag behind homeowner expectations with the gap widening to 1.90% in the latest Quicken Loans survey data for April. This is compared to a 1.77% gap in March.

On the home value side, these were up 1.06% on the month and 5.08% for the year.

Home Price Perception Index (HPPI)HVI HPPI Graphs

Homeowners overestimated the value of their homes by 1.90% in April. This marks the fourth consecutive month that the gap between homeowner and appraiser evaluation of home value has widened. While value opinions vary widely from location to location, there was little change in most cities between March and April.

Quicken Loans Vice President of Capital Markets Bill Banfield said that having a realistic understanding of local home values makes your mortgage process that much easier.

“The appraisal is one of the most important data points in a mortgage transaction. This single number can impact how much money a buyer needs to bring to closing, or the equity that is available to the homeowner on a refinance,” said Banfield. “If homeowners have a grasp on home value differences throughout their local area, it can lead to a smoother mortgage process.”

Taking a look at the regional data, homeowners in the West continue to most closely mirror appraisal value, overestimating by just 1.65%. The South follows, coming in at 1.83%. The Midwest and Northeast bring up the rear, at a gap of 2.02% and 2.17%, respectively.

At the metro level, Denver continues to be a really hot market, with appraisals coming in 2.72% above homeowner expectation. Philadelphia remains at the other end, with homeowner opinions being 3.37% higher than those of appraisers. Homeowners in Riverside, Calif. were closest to appraisals, overestimating by just 0.16%.

Home Value Index (HVI)D-HVI-HPPI-Graphs

Home values rose 1.06% in April and have gone up 5.08% since the same time last year.

Banfield said that much of the reason for the value increases recently has been that supply has outpaced demand.

“Home values were pushed higher once again by the demand for housing outpacing the stock of available homes,” he said. “This effect is intensified by the start of the spring buying season. While sellers are obviously thrilled as their investment continues to grow in value, this trend could make homebuyers set their sights on smaller homes or less pricey neighborhoods. I would encourage homeowners who are considering listing their home to take advantage of the opportunity they have in this sellers’ market.”

Values in the Northeast had the biggest monthly jump, up 1.96%, but only up 3.54% on the year. Values in the West were up 1.03% and 6.52% on the year. This was followed by the Midwest at 0.80% and 4.08% yearly. Finally, values in the South rose 0.67% and 5.02% since last April.

Whether rising home values make you want to refinance or get your purchase agreement in before they rise further, if you’re in the market for home financing, you can get started today through Rocket Mortgage. If you’d rather speak with one of our Home Loan Experts, we’d be happy to take your call at (800) 785-4788.

The Quicken Loans Home Price Perception and Home Value Indexes are released on the second Tuesday of each month on the Quicken Loans Press Room.

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