A residential road in Newton, MA in fall

Perceptions of property values came more in line with actual appraised values in October, according to Quicken Loans Home Price Perception Index (HPPI). The HPPI measures the difference between a home’s value between appraisers and homeowners.

Homeowners overestimated their property value by just 1.15%. This is an improvement from 1.26% in September. Home values were down 0.62%, but remain up 5.97% since last October.

Home Price Perception Index (HPPI)

D-HVI-HPPI-Graphs

Homeowners overvalued their homes by just 1.15% in October. The gap is the biggest in the Midwest and Northeast, where figures are at 1.25% and 1.23%, respectively. In the South and West, where in many cities home values are actually more than homeowners think, homes are overvalued by just 1.14% and 1.01%, respectively.

Local property values impact not only your ability to buy a home at a price you want or can afford, but also on the refinance process as well.

“This information can be helpful to homeowners to either prevent bumps in the mortgage process or realize they may have more equity available to them than they think,” said Quicken Loans Chief Economist Bob Walters.

One thing worth pointing out is that home values were higher than homeowner expectations in 15 of the cities that were reviewed. In Miami, homeowner expectations exactly matched appraisal values.

Denver remains the hottest housing market, with appraisers placing values 3.07% higher than homeowners. Appraisal values still lag well below homeowner expectations in Philadelphia, as they’re off by 2.88%.

Home Value Index (HVI)

D-HVI-HPPI-Graphs

Home values dipped by 0.62%. It’s important to note that they’re still up 5.97% since the same time last year. This was a decrease from 7.78% in September.

There were value increases of 0.39% and 0.21% in the Northeast and Midwest, respectively. However, values in the West were down 0.64% and the South saw a .24% decrease.

“The monthly dips in home values are likely a result of the cooling demand for housing during the autumn months,” said Walters. “Fluctuations in monthly numbers are expected. Attention should always be paid to the annual measures to ensure positive growth compared to the same season the previous year. The yearly measure in October continues to show strong growth and a positive outlook for housing.”

The Quicken Loans’ HPPI and HVI are released on the second Tuesday of each month on the Quicken Loans Press Room.

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