Quicken Loans: Owner Perceptions of Home Values Improve for Second Straight Month as Spring Homebuying Season Ends

  • July 9, 2019

• Quicken Loans’ National HPPI shows appraised values 0.71% lower than homeowners estimated in June

• Home values rose 0.56% nationally in June, and posted a 4.78% year-over-year increase, according to the Quicken Loans HVI

DETROIT, July 9, 2019 – The average home appraisal in June was 0.71% lower than owners’ estimates, according to the Quicken Loans’ National Home Price Perceptions Index (HPPI). After six months of growing gaps, this is the second month in a row that the two data points tightened, showing that owners and appraisers share similar opinions on of home values nationwide as spring homebuying season gives way to summer.

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The declining margin between the two data points reflects the tightening perceptions in the metro areas studied, with only three cities having reporting a 1.5% difference between perceived and actual home values. Chicago and Philadelphia had their homes appraise an average of 1.52% and 1.69% lower than what homeowners expected, respectively. On the other hand, Charlotte-area homes appraised and average of 2.01% higher than what homeowners estimated.

“The refinance share of mortgage activity is at its highest rate since January of 2018, and it appears that homeowners have done their due diligence on their home’s value as millions across the country refinance their home loans,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “This decline in the discrepancy between perceived and appraised value should encourage homeowners who are contemplating a refinance, knowing that appraisals are not likely to disrupt the process when they take advantage of low rates.”

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Quicken Loans’ Home Value Index (HVI) shows that appraised values rebounded from May’s more than 1% decline, as the average home appraised 0.56% higher in June. Additionally, the average home increased in value by 4.78% since June of last year, providing significant equity to millions of homeowners.

The increase in appraisal values is due in large part to the West, where home values experienced a 1.87% jump, leading the nation. The Northeast experienced a 1.00% month-over-month increase. While the Midwest and South experienced decreases in appraisal values, both were less than 0.25%. All regions have reported year-over-year increases in appraisal values, ranging from 3.83% in the South to 5.20% in the West.

“I’m encouraged that the only regional declines in monthly appraisal values were less than a quarter percent, while the increases were both by at least one percent,” Banfield said. “Additionally, the annual increase in home values continues to grow, showing that homeowners are much better off than they were a year ago as their homes continue to build value.”

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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 nearly half a trillion dollars of mortgage volume across all 50 states from 2013 through 2018. 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 2019 and has been included in the magazine’s top 1/3rd of companies named to the list for the past 16 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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