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Appraisers and homeowners continue to come closer to consensus on home values, according to newly released data from Quicken Loans. In October, appraisal values were just 0.99% lower than homeowner estimates.

There was also good news in terms of the values themselves. Home values were up 0.71% in October and have risen 4.76% on the year. If you’re looking to purchase, you might consider buying now before prices rise again. It’s also a good time to take cash out.

Home Price Perception Index (HPPI)

HPPI Grahp

Homeowner estimates were just 0.99% higher than the actual values given by appraisers in October. This is an improvement over the 1.14% difference seen in September and the fifth straight month that appraisers and homeowners have come closer to agreement. Additionally, appraisals are coming in higher than homeowner estimates in many Western cities in particular, although Dallas stands out as a hot market right now.

Quicken Loans Executive Vice President of Capital Markets Bill Banfield says that homeowners need to be very aware of values in their local markets in order to have the most accurate perception of value.

“Based on the HPPI, it appears homeowners in the markets where prices are rising faster than the national average – like Denver, Seattle and San Francisco – are continuing to underestimate just how quickly home values are rising, so the average appraisal is higher than homeowner estimate,” says Banfield. “On the inverse of that, homeowners in areas where the values aren’t rising as fast may think they are rising faster than they are, leading to the appraisal lagging the estimate.”

Taking a look at the regional data for a second, homeowners in the West are closest to actual appraisal values, with estimates coming in just 0.81% higher than appraised value. The South and Midwest follow with estimates that are 1.02% and 1.05% higher, respectively. The Northeast trails with estimates coming in 1.11% higher.

As mentioned above, Dallas is the hottest metro area. Appraisals are coming in 3.13% higher than homeowner expectations. On the other hand, homeowner expectations in Philadelphia are 2.69% higher than appraisal values. Tampa, Florida has the market closest to balance. Appraisal values are just 0.03% below homeowner opinions.

Home Value Index (HVI)

HVI Graph

Home values were up 0.71% in October based on appraisal data. They’ve risen 4.76% since the same time last year. That being said, values in the Midwest and West did drop slightly.

Banfield says supply and demand should help keep prices high for the time being.

“As we enter the traditionally slower demand season in the home purchase market, persistent supply constraints may keep home prices elevated,” he says. “Compared to the previous year, our economy continues to improve and attract home buyers who may have been on the sidelines during the past few years. This will add additional demand to the equation.”

It was a big month for the South in terms of rising property value, with appraisal values rising 3.31% compared to September. They’ve risen 5.71% on the year. In the Northeast, values were up 1.10% and 3.44% yearly. Meanwhile, in the Midwest values fell 0.29%, but are still up 5.12% annually. Western homeowners saw values fall 0.98%, but there 5.42% since last October.

With these rising values, it’s a great time to convert some of your existing equity into cash or take the leap into homeownership with a purchase. If you’re ready, you can get started online or give one of our friendly Home Loan Experts a call at (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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