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Appraised values came in 0.28% lower than homeowner estimates in July. This is a slight widening of the gap, but the two groups are still very close to equilibrium.

While home values fell 0.6% in July, home values have risen 4.86% on the year.

Home Price Perception Index (HPPI)

Homeowners and Appraisers Very Close to Agreement on Home Values - Quicken Loans Zing Blog

While homeowners and appraisers drifted 0.03% further apart, they’re still very close together with homeowners overestimating property value by just 0.28% overall.

Quicken Loans Executive Vice President of Capital Markets Bill Banfield said that the narrowing of differences between appraisers and homeowners means good things for the market overall.

“The story the HPPI is currently telling is one of an ever-strengthening housing market,” said Banfield. “With more appraisals meeting, or even reaching beyond, the level homeowners were expecting, it’s clear home values in the majority of areas have recovered to the point where the owners’ personal view is finally lining up with the appraisers’ expert view.”

Turning to regional data, the West is the closest to equilibrium with appraisers. Homeowners in the West overvalued their homes by just 0.14%. Meanwhile, the rest of the regions are tightly bunched together. In the South, properties are overvalued by 0.3%, in the Northeast it’s 0.33%, and in the Midwest it’s 0.35%.

At the local level, appraisals came in higher than homeowner estimates in almost 80% of the areas surveyed. San Jose, California has the hottest housing market of the moment with appraisals coming in 2.91% higher than homeowner estimates. Chicago homeowners were the most out of step, overvaluing homes by 1.58%. Meanwhile, homeowners in Miami deserve a special shoutout at this point: There was no difference between appraisal values and homeowner estimates.

Home Value Index (HVI)

Homeowners and Appraisers Very Close to Agreement on Home Values - Quicken Loans Zing Blog

Home values were down 0.6% on the month, but they’re still up 4.86% on the year.

Banfield said the continuing trend toward higher home prices is a double-edged sword.

“The HVI is telling a similar story of the housing market’s health,” he said. “Other than some small monthly shifts, home values continue to grow at an annual pace exceeding inflation. This can hurt affordability and hinder first-time buyers from entering the market.”

In terms of regional data, home prices were actually up in three of the four regions. Only the Midwest had a monthly drop of 1.01%. But even here, home values are still up 4.04% compared to last year.

The monthly gainers from least to greatest are the South – up 0.35% and 4.46% yearly – followed by the Northeast – up a monthly 0.72% and a yearly 2.78%. Finally, the West was up 1.15% on the month and 6.68% annually.

If you’re in the market to buy or refinance a home, you can get started online with Rocket Mortgage® by Quicken Loans. If you would rather give us a call at (800) 785-4788, one of our Home Loan Experts would be happy to work with you.

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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