Meanwhile, the Home Price Perception Index shows that appraisers valued homes 1.56% higher than homeowners did. This represents more agreement on pricing than there was last month.
Home Value Index (HVI)
The HVI, which measures home values based strictly on appraisal data, showed a national increase of 0.27% month to month.
Regionally, the Northeast saw the biggest home value gains at 1.23%, followed by the Midwest at 0.42% and South at 0.17%. In the West, values dropped by 0.19%.
The metro area with the largest price increase was Boston at 3.88%. Tampa, Phoenix and Minneapolis saw their home values drop by 6.91%, 6.17% and 7.87%.
Quicken Loans Chief Economist Bob Walters said that large differences in price across the nation indicate that housing is a very localized market.
“The housing market is mending at a national level, but the recovery in some areas is moving more swiftly, and others have been lagging,” Walters said. “Home buyers and sellers can make better financial decisions by educating themselves about their local housing markets.”
Home Price Perception Index (HPPI)
The Quicken Loans HPPI showed that appraisers valued homes 1.56% higher than homeowners did. The gap has narrowed since October when the difference was 1.58%. At this time last year, the gap was 1.34%.
Walters explained why it is important that the difference between home buyer and seller valuations and appraisal valuations be near equilibrium.
“Mortgage financing often hinges on whether the appraised value coincides with the home values agreed upon by the home buyer and seller in the case of a home purchase, and the homeowner’s estimated value in the case of a refinance,” said Walters. “It is reassuring to see the gap between appraiser opinions and homeowner opinions narrow, and if we had to choose a side of the fence, it makes for a much smoother mortgage process if appraisers are valuing homes above homeowners’ estimates like we’re seeing, as compared to the opposite.”
Three quarters of metro areas surveyed had appraiser opinions higher than homeowner estimates, but opinions varied quite a bit across different cities. While appraisals were 6.0% higher than homeowner estimates in San Jose, CA, appraisals came in 2.53% lower than owner estimates in Kansas City, MO.
Appraisers rated homes higher than homeowners in the West and South by 5.73% and 1.93%, respectively. Meanwhile, homeowners overvalued homes by 1.54% and 2.76% in the Midwest and Southeast.
The Quicken Loans Home Value and Home Price Perception indices come out on the second Tuesday of each month. You can find indices in the Quicken Loans Press Room.
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