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Home values were on the rise in June after taking a step back slightly in May. In addition, there was more harmony when looking at homeowner estimates in comparison to actual appraised values.

This is good news if you’re looking to apply for a mortgage, but let’s dig into the details.

Home Price Perception Index (HPPI)Bar line graph about homeowner estimates and appraiser opinions of home values

Homeowners overestimated the value of their homes by 0.71% in June, but this is an improvement from the 0.79% gap in May.

Bill Banfield, Quicken Loans Executive Vice President of Capital Markets, said that homeowners are paying really close attention to home values now because a drop in rates has caused people to really think about accessing their equity through a cash-out refinance.

“The refinance share of mortgage activity is at its highest rate since January of 2018, and it appears that homeowners have done their due diligence on their home’s value as millions across the country refinance their home loans,” said Banfield. “This decline in the discrepancy between perceived and appraised value should encourage homeowners who are contemplating a refinance, knowing that appraisals are not likely to disrupt the process when they take advantage of low rates.”

Taking a look at the regional data, homeowners overestimated their home values by 0.69% in both the West and Midwest. In the South, homeowners were off by 0.72% in their estimates, and the difference was 0.75% in the Northeast.

Charlotte, North Carolina is the hottest housing market when comparing appraised values to estimates. There, actual property values are coming in 2.01% higher than homeowners expect. Meanwhile, Philadelphia is on the other end of the spectrum, with homeowners overvaluing their homes by 1.69%. In the nation’s capital, homeowner estimates and appraised values exactly match.

Home Value Index (HVI)Perception of home values across America based on HPPI.

Home values rose 0.56% in June and have gone up 4.78% year-over-year. Rising values mean more equity for homeowners.

Banfield said that while the gains were uneven, things seem to be trending in a positive direction.

“I’m encouraged that the only regional declines in monthly appraisal values were less than a quarter percent, while the increases were both by at least one percent,” Banfield said. “Additionally, the annual increase in home values continues to grow, showing that homeowners are much better off than they were a year ago as their homes continue to build value.”

Looking at the regional data, home values were up 1.87% in the West and have risen 5.2% on the year. Meanwhile, in the Northeast, these are up 1% on the month and 4.46% on the year. In the South home values were down 0.16%, but they’ve gone up 3.83% year-over-year. Finally, in the Midwest, values were down 0.23% on the month, but up 3.29% on the year.

If these values look good to you, maybe you’re ready to consider buying a home or refinancing. You can either get started online through Rocket Mortgage®by Quicken Loans or by giving of our Home Loan Experts a call at (800) 785-4788.

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