Home Price Perception Index (HPPI)
The 0.18% gap represents the most agreement on pricing between homeowners and appraisers since September 2013. Knowing how much your home is worth can be important in both real estate transactions and for the purposes of refinancing. It also represents a significant contraction in the gap from last month’s 1.43% difference.
Quicken Loans Chief Economist Bob Walters said this level of pricing agreement is good to see.
“Interest rates have dropped and we have seen more and more Americans refinance their mortgage. These consumers have been watching their local housing market and realizing their home’s true value more accurately than any time in the last year and a half,” said Walters. “This is encouraging, but I urge homeowners to continue to watch the ebbs and flows of the market, especially in their neighborhood, so they understand the direction of home values in their community when it comes time to sell.”
The gap narrowed in over two-thirds of the metro areas surveyed. Despite the continual trend toward pricing agreement, appraisers are still rating values higher than homeowners in more than 74% of metro areas surveyed.
Home value opinions were very close across all regions. The biggest gap was in the West, where appraisers rated homes 0.69% higher than homeowners, while in the Northeast, appraiser opinions were only 0.02% higher.
Home Value Index (HVI)
Home values were up 1.94% in January. Prices are up 5.63% from this time last year.
Values were up across all regions. The gains were around 5% in the West, South and Midwest. Meanwhile, the Northeast experienced a 9.31% jump in home value.
Walters said the rising home values are a good sign for the economy.
“The rebound from December’s dip in home values shows that the economy is slowly regaining its health and finding solid footing,” Walters said. “Homeowners are becoming more confident in the housing market and the economy as a whole. All eyes will be on home inventory in the spring and summer to see if the added equity will push more homeowners off the fence and provide the impetus to put their home on the market.”
The Quicken Loans Home Value and Home Price Perception Indices are released on the second Tuesday of each month in the Quicken Loans Press Room.
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