Homeowner Perception and Equity Growth Remain Steady as 2018 Comes to a Close December 11, 2018 • Quicken Loans’ National HPPI shows appraised values 0.36% lower than homeowners estimated in November • Home values rose 0.53% nationally in November, but posted a 5.01% year-over-year increase, according to the Quicken Loans HVI DETROIT, December 11, 2018 – The difference between owners’ estimates of home values and appraisal values increased in November, although it was still an extremely narrow spread, at a national level. Across the country, appraised values were an average of 0.36 percent lower than what homeowners expected, according to Quicken Loans’ National Home Price Perception Index (HPPI). Adding to the good news of owners and appraisers aligning on home values, is the growth of appraisal values across the country. Quicken Loans’ National Home Value Index (HVI) erased a slight dip from the previous month with a 0.53 percent increase in November. The annual gains follow a trend that has been consistent the last few months. Nationally, the average home appraisal was 5.01 percent higher than it was in November 2017. Home Price Perception Index (HPPI) This year has not produced much monthly movement in the gap between home appraisals and homeowners’ expectations. In fact, the difference has remained below half a percent since March, with little month-to-month variation. At a metro level, Chicago is the only area with appraisals more than 2 percent lower than what homeowners estimated. Boston, Denver and Charlotte were on the other side of the spectrum – each with the average appraisal coming back more than 2 percent higher than expected in November. “Homeowner perception staying at a steady level is a sign of a sturdy housing market,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “Some homeowners may not be as aware of home value changes as the professionals who study the real estate market every day, so any large, sudden, spikes or drops in home values, are often reflected by a swift widening gap in the HPPI.” Home Value Index (HVI) The Quicken Loans HVI reported annual home equity growth continuing to march ahead at a consistent pace. Monthly change, however is a reflecting slower, more measured increases. This is the story across the country. Not only from the national, aggregate, level but in every region – to varying degrees. Home values rose by about half of a percent in all four regions measured by the HVI, while they all posted annual growth from 4 to 6 percent. “With interest rates higher than they were at this time last year, and signs pointing to this trend continuing, it’s good to see appraisal values keeping moderate annual growth – avoiding possible affordability problems,” said Banfield. “While homeowners like to celebrate increasing equity, these restrained gains, keeping closer pace with inflation and wage growth, is much healthier for the economy.” ### 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 nine consecutive years, 2010 – 2018, 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.