Home Price Perception Index (HPPI)
Appraiser perceptions of home prices came in lower than those of homeowners for the first time since August 2013. Despite the changes in the nationwide average, appraiser opinions still remained higher than those of homeowners in 18 of the 27 metropolitan areas analyzed in the survey. Appraiser opinions were lower than homeowner opinions by 0.16% in Baltimore, and by 0.24% in Atlanta. This dragged the national average down.
Quicken Loans Chief Economist Bob Walters said that although the scales have now flipped, homeowners shouldn’t expect to see much of an effect.
“While it’s significant that appraiser opinions are now lower than homeowners’ nationally, this minimal difference is unlikely to derail a refinance or cause headaches for the homeowner,” said Walters. “The dip in the HPPI is likely caused by a delay of homeowner perceptions. As the economy recovered, homeowners hadn’t realized property values had improved. With the headlines of growing home prices, homeowners are catching up, but are now a bit overzealous in their estimates.”
Regionally, homeowner opinions were higher than appraiser opinions in the South, Northeast and Midwest. In the West, appraiser opinions remained higher.
Home Value Index (HVI)
While home values were mostly flat across the rest of the country, a 2.46% growth in the West doubled the country’s average and pushed prices up 1% nationwide. Prices are up 8.46% compared to this time a year ago.
In addition to the increase in the West, the South has seen an increase of 0.35%. The Northeast and Midwest were down 0.16% and 0.40% in February, respectively.
Walters analyzed the home value increases across the country.
““The Western Region continues to glow red hot, while home values in the rest of the country remain frozen,” said Walters. “The spring home-buying season may be a big market mover, depending on the inventory that is available. Bidding wars from a tight market could cause prices to jump, or we could see more gradual growth in a more balanced market.”
For more information, you can find the Quicken Loans press release here. The Quicken Loans Home Value and Home Price Perception Indexes are released on the second Tuesday of each month in the Press Room.
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