houses at golden hour

Home values were up more than at any point in the last four years in April. On the other hand, appraisers and homeowners drifted slightly further apart on the value of homes.

If you’re looking to buy or refinance, there’s definitely some momentum in terms of home values.

Home Price Perception Index (HPPI)

home values perception

Homeowners and appraisers experienced a bit more disagreement in April on home values. Average appraisal values came in 0.87% below homeowner estimates according to Quicken Loans® data. This is compared to a 0.78% gap between the two groups in March.

Bill Banfield, Quicken Loans Executive Vice President of Capital Markets, said that those looking to buy or refinance don’t have to look very far to know what’s going on in the housing market. The answers could be right in their neighborhood.

“The continued widening of the gap between homeowners’ and appraisers’ viewpoints is evidence of just how hard it can be to keep your finger on the pulse of local housing – especially at the onset of home selling season,” said Banfield. “I encourage homeowners to keep a close eye on the homes selling around them. This can help them to be more realistic when estimating the value of their home to refinance or sell.”

For a closer look, let’s first turn to the regional numbers. Western homeowners are closest to actual appraised values, overestimating the value of their home by just 0.83%. In the Midwest and South, homeowners overvalued their homes by 0.85% and 0.87%, respectively. The Northeast trails, but not by much, overestimating home value by 0.94%.

On the metropolitan level, appraised values are coming in higher than estimates in more than half of the cities surveyed. Boston homeowners continue to have the hottest housing market out there with appraised values coming in 2.08% above homeowner estimates. Meanwhile, Cleveland homeowners are on the other end of things, overestimating value by 1.95%. The nation’s capital was closest to harmony with appraisers, having homes valued 0.05% higher than homeowner estimates.

Home Value Index (HVI)

HPPI may

Home values spiked in April, up 1.95% on the month, according to Quicken Loans data on appraisals. The gain represents the largest monthly increase since January 2015. Meanwhile, the annual growth and home values went from 3.37% to 5.43%.

Banfield believes that the gains come down to high demand which continues to outpace housing inventory growth.

“Demand for housing is high this spring. The strong economy is leading more to look for a home, but the persistent low inventory keeps home values rising across the country,” he said. “These new, higher levels are helping homeowners who are selling or accessing their equity – but the higher prices can make buyers reevaluate their budgets before heading out to open houses.”

The biggest gain for the month with a 2.11% uptick in appraised value occurred in the Midwest, which has now seen values increased 5.33% on the year. In the South, values are up 5.12% annually after rising 1.74% on the month. The West had the next highest monthly gain, going up 1.58% and 3.87% on the year. The Northeast had the smallest monthly gain, but was still up a healthy 1.16% and 4.81% annually.

If you’re looking to buy or refinance a home, you can get started online with Rocket Mortgage® by Quicken Loans. You can also give one of our Home Loan Experts a call at (800) 785-4788.

The 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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