A traditional, brick home during a Winter snow storm. The architecture reflects old styles, however, the construction of the homes has used modern materials and finishes. Nice image for any Winter project.

Appraiser opinions of home value were just 1% lower than those of homeowners in November, according to the Quicken Loans National Home Price Perception Index (HPPI). This is the fifth straight month that the difference in valuations has narrowed.

In more good news for homeowners, home values also went up in November by 0.42% and have increased 5.28% since the same time last year.

Home Price Perception Index (HPPI)

graph illustrating home valuesHome values tend to move cyclically, and whether they’re moving up or down, it takes some time for homeowners to get caught up to what’s happening in the market. Since April, the difference between homeowner and appraiser opinions of home value has been on a closing trend. Homeowners valued their homes 1% higher than appraisers in November, compared to 1.15% in October.

Quicken Loans Chief Economist Bob Walters said this is important because homeowners have a better idea of what to expect from an appraisal during the refinance process.

“The HPPI compares the perceived gap between the homeowner’s and the appraiser’s opinion of home values and has provided an intriguing look into the psychographics of our housing market,” said Walters. “The most recent HPPI indicates homeowners and appraisers are closer to agreeing at the end of 2016 than they were at the start of the new year. It’s our hope that with this information the only surprises this holiday season are the ones wrapped under the tree.”

Regionally, homeowners in the West are closest to agreeing with appraisers. They overvalue their homes by just 0.77%. Meanwhile, Midwesterners bring up the rear, with estimates that are 1.32% higher than appraiser opinion.

Despite the national trend of homeowner estimates being higher than those of appraisers, homeowners are actually undervaluing their properties in 16 of the 27 major metropolitan areas surveyed. This reinforces the idea that home prices are really all about local markets.

Home Value Index (HVI)

Graph illustrating perceptions versus appraised value of homesHome values themselves appreciated 0.42% in November and are up 5.28% annually.

Walters said that rising home prices have been a function of supply and demand in local markets.

“Home values pushed higher throughout 2016, largely driven by lack of supply in the hottest markets,” he said. “It’s yet to be seen if these increases will continue or wane as homebuilding grows, boosting inventory.”

There were monthly gains in three of the nation’s four regions. The Northeast led the way, up 1.12%. Only the South saw declines, falling 0.31%.

In terms of annual gains, the West is setting a pace no other region can hope to match right now, up 7.32%. The South trails the other regions with a gain of just 3.29%.

Now that you’re armed with the latest information on home values, perhaps you’re ready to buy or use that increased equity to take cash out of your home. We can help with that! Check out Rocket Mortgage® by Quicken Loans®.

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This Post Has 2 Comments

  1. I love how quick and loan talk, it is tied some filling out forms , then things won’t happen in my favor. There have to be something out there to by for me. I am disabled , but i work to. Paying 1,500 a month rent a month, for the last 20 years, help me out. I don’t mind talking to others about how Quicken and Loan help me. I’ll keep trying, the right person is out there. Help. Thanks. Contact me.

    1. Hi Ronald:

      We would absolutely be happy to talk to you and look into your situation. I’m going to have someone reach out to go over your options.

      Thanks,
      Kevin Graham

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