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As of June 25, 2018, we’ve made some changes to the way our mortgage approvals work. You can read more about our Power Buyer ProcessTM.

For the fourth consecutive month, homeowners and appraisers narrowed the gap in terms of perception of home value in September. Appraisal values came in just 1.14% lower than homeowner estimates.

In terms of home values, they were up 0.44% nationally in September, and there’s a 3.38% annual increase from September of last year. With home values on the rise and rates low, it could be an excellent time to take cash out of your home. If you’re looking to buy, it may make sense to do so now before prices and rates rise again.

Home Price Perception Index (HPPI)

Homeowners and Appraisers Closer to Agreement on Home Values for Fourth Consecutive Month - Quicken Loans Zing Blog

The difference between actual home value as measured by appraisers and the estimates of homeowners got smaller in September, with the difference narrowing to 1.14% vs. 1.35% in August.

Quicken Loans Executive Vice President of Capital Markets Bill Banfield said that being aware of your home value is a major help in the mortgage process.

“An appraisal can vastly impact the mortgage process. This number alone can impact how much a buyer needs to bring to closing, or the current equity a homeowner has when refinancing,” said Banfield. “If homeowners are aware of local home values and how they are changing, it will assist with a smoother mortgage process.”

In terms of regional data, homeowners in the West were closest to the actual value, overestimating by just 0.93%. Meanwhile, Southern and Northeastern homeowners were off by 1.14% and 1.21%, respectively. Homeowners in the Midwest overestimated value by 1.31%.

Homeowners in Dallas have the most undervalued properties based on homeowner estimates. Appraisal values came in 2.87% higher. Philadelphia homeowners were at the opposite end of the charts, overestimating value by 2.89%. Riverside, California, residents were closest to the actual values, underestimating by just 0.03%.

Home Value Index (HVI)

Homeowners and Appraisers Closer to Agreement on Home Values for Fourth Consecutive Month - Quicken Loans Zing Blog

Home values are up 3.38% since the same time last year after rising 0.44% in September.

Banfield said homebuilders will have to step up construction in order for there to be price moderation in the market.

“Home values are highly impacted by the balance of buyer’s interest and the volume of available homes. Currently this is highly tilted, with a lack of home inventory – leading to rising values,” he said. “One of the most impactful things that could be done to achieve stability is an increase in new home building. If move-up buyers move on to new construction, it will open up starter homes for first-time buyers.”

Briefly turning to regional data, home values were down 1.33% in the South, but they’re still up 2.08% on the year. All other regions saw increases. In the West, values were up 0.98% and 5.77% since last September. In the Northeast, they were up 0.91% and 2.71% yearly. Finally, values in the Midwest were up 0.66% and 5.64% annually.

If you’re in the market for a mortgage, it’s a great time to get started, with rising home values and low rates. If you want to go ahead and get a preapproval to buy a home or a full refinance approval, you can do so through Rocket Mortgage® by Quicken Loans®. If you’d rather get started over the phone, you can get in touch with one of our Home Loan Experts by calling (800) 785-4788.

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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