Quicken Loans Report shows Convergence of Owner and Appraiser Home Value Opinions

  • August 14, 2018
• Quicken Loans’ National HPPI shows appraised values 0.28% lower than homeowners estimated in July
• Home values dipped 0.60% nationally in July, but posted a 4.86% year-over-year increase, according to the Quicken Loans HVI

DETROIT, August 14, 2018 – Homeowners and appraisers are agreeing in much of the country as appraisals are more likely to be at or above what a homeowner expected. In July the average home appraisal was 0.28 percent lower than what the owner estimates, according to the National Quicken Loans Home Price Perception Index (HPPI). However, this is much improved from a year earlier when appraisal values were an average of 1.55 percent lower than anticipated.

Just like perceptions of values are improving from the previous year, appraisal values themselves are making annual gains. As reported by the National Quicken Loans Home Value Index (HVI), home values rose an average of 4.86 percent annually, despite a 0.60 percent dip from June to July.

Home Price Perception Index (HPPI)

Homeowners are less likely to be surprised when they see their appraisal report with the gap between the appraisers’ and owners’ opinions of value narrowing. Appraisals were 0.28 percent lower than expected in July. This is nearly the same as in June when they were 0.25 percent lower, but vastly improved from the previous July when appraisals were 1.55 percent lower than what the owner estimated. The difference in perceptions is improving at a local level as well, with appraisal values higher than expected in nearly 80 percent of the metro areas examined.

“The story the HPPI is currently telling is one of an ever-strengthening housing market,” said Bill Banfield, Executive Vice President of Capital Markets at Quicken Loans. “With more appraisals meeting, or even reaching beyond, the level homeowners were expecting it’s clear home values in the majority of areas have recovered to the point where the owners’ personal view is finally lining up with the appraisers’ expert view.”

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Home Value Index (HVI)

The Quicken Loans HVI – the only measurement of home value changes based solely on appraisal data – reported a slight monthly drop in home values, but strong annual growth. The national index reported a 0.60 percent dip in value since the previous month, however there was a 4.86 percent appraisal value increase year over year. The only region that fell in value was the Midwest, dropping 1.01 percent and losing the majority of its gains from June. However, everty region showed annual growth. The West led the way, with a 6.68 percent increase in home value. The Northeast trailed with a 2.78 percent gain since July 2017.

“The HVI is telling a similar story of the housing market’s health,” Banfield said. “Other than some small monthly shifts, home values continue to grow at an annual pace exceeding inflation. This can hurt affordability and hinder first time buyers from entering the market.”

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About the HPPI & HVI

The Quicken Loans HPPI represents the difference between appraisers’ and homeowners’ opinions of home values. The index compares the estimate that the homeowner supplies on a refinance mortgage application to the appraisal that is performed later in the mortgage process. This is an unprecedented report that gives a never-before-seen analysis of how homeowners are viewing the housing market. The HPPI national composite is determined by analyzing appraisal and homeowner estimates throughout the entire country, including data points from both inside and outside the metro areas specifically called out in the above report.

The Quicken Loans HVI is the only view of home value trends based solely on appraisal data from home purchases and mortgage refinances. This produces a wide data set and is focused on appraisals, one of the most important pieces of information to the mortgage process.

The HPPI and HVI are released on the second Tuesday of every month. Both of the reports are created with Quicken Loans’ propriety mortgage data from the 50-state lenders’ mortgage activity across all 3,000+ counties. The indexes are examined nationally, in four geographic regions and the HPPI is reported for 27 major metropolitan areas. All indexes, along with downloadable tables and graphs can be found at QuickenLoans.com/Indexes.

About Quicken Loans

Detroit-based Quicken Loans Inc. is the nation’s largest home mortgage lender. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017. Quicken Loans moved its headquarters to downtown Detroit in 2010. Today, Quicken Loans and its Family of Companies employ more than 17,000 full-time team members in Detroit’s urban core. The company generates loan production from web centers located in Detroit, Cleveland and Phoenix. Quicken Loans also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit. Quicken Loans ranked highest in the country for customer satisfaction for primary mortgage origination by J.D. Power for the past eight consecutive years, 2010 – 2017, and also ranked highest in the country for customer satisfaction among all mortgage servicers the past five consecutive years, 2014 – 2018.

Quicken Loans was once again named to FORTUNE magazine’s “100 Best Companies to Work For” list in 2018 and has been included in the magazine’s top 1/3rd of companies named to the list for the past 15 consecutive years. In addition, Essence Magazine named Quicken Loans “#1 Place to Work in the Country for African Americans.”

For more information and company news visit QuickenLoans.com/press-room.

Additional graphics are available below.

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