The Quicken Loans Home Value Index (HVI) for the month of October showed that home values increased by 2.03% since September. This is a 3.35% increase from this time last year.

Quicken Loans Home Value Index up More than 2% for October - Quicken Loans Zing Blog

More than 50% of homeowners for areas surveyed saw monthly increases in home values. In the same areas, 90% of homeowners have seen home value increases in the last year.

The South and the Northeast saw the strongest home value increases in October. The West had a slight appreciation in value, while the Midwest was flat. Houston, San Jose, New York City and Charlotte had the strongest month-to-month improvement. Chicago, Boston, Portland and Minneapolis experienced substantial depreciation since September due to declining housing markets.

“The vast majority of the country is seeing steady, single-digit home value increases. This is the healthy momentum we look for in a stable housing market,” said Quicken Loans Chief Economist Bob Walters. “In most markets, home values are making up the ground they lost during the recession.”

Quicken Loans Home Price Perception Index (HPPI) showed that appraisers’ opinions of home values were 1.58% higher than homeowners’ value expectations. This is an improvement on last month, when appraisers valued homes 1.62% higher than homeowners did. The discrepancy between appraisal values and expectations is much greater than this time last year when the number was only 0.83.

Quicken Loans Home Value Index up More than 2% for October - Quicken Loans Zing Blog

HPPI is a measurement of the difference between an appraiser’s opinion of the value of a home and that of the homeowner. A positive number means that the appraiser rated the home value higher than the homeowner, while a negative value means that the homeowner rated their home value higher than an appraiser would price the house in the market.

Walters said that while people would love to be pleasantly surprised by the fact that appraisers think their home is worth more, it’s much better for homeowners to have an accurate perception of the market for their home.

“The closer together the appraiser and homeowner opinions are, the more homeowners are understanding what is happening to their local housing market,” he said. “Whether homeowners are looking to sell soon, hoping to refinance or applying for a home equity loan, there are many benefits to understanding the current home value trends in their area.”

Homeowners in the South and the West were low in their estimates of home values, with appraisal values coming in 1.40% higher and 5.01% higher respectively. In the Northeast, the trend flipped, with appraisers’ estimates coming in below homeowners’ estimates by 3.06%. The same was true in the Midwest, with homeowners overvaluing their home by 1.95%.

Quicken Loans Home Value Index up More than 2% for October - Quicken Loans Zing Blog

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *