Appraisers again burst homeowner expectations in August, arriving at values 1.35 percent lower than what homeowners expected, according to the latest Quicken Loans’ National Home Price Perception Index (HPPI). The latest Quicken Loans National Home Value Index (HVI) shows appraised values rose 2.64 percent year-over-year.
A summary of the HPPI:
A home’s value, or its perceived value, can influence whether the owner decides to sell the home, refinance or even access some of their equity. However, the HPPI shows not all homeowners understand their home’s current value. Nationally, appraisals in August were 1.35 percent lower than homeowners’ valuations.
Regionally, value perceptions vary widely across the country, from home values being 3 percent higher than homeowners estimated in the West to 3 percent lower than expected in the Midwest and Northeast. A 3 percent difference may seem small, but depending on the local market, it could make a significant impact on value. For instance, a homeowner in Denver may have upwards of $11,000 in additional equity they can access for home improvements or loan consolidation.
“One of the biggest lessons from the HPPI is highlighting how regionalized real estate is,” says Bill Banfield, executive vice president of Capital Markets at Quicken Loans. “Homeowners who have a better understanding of their local housing market can make more informed decisions about their home. After all, their house is not just where they live, but one of their bigger assets.”
A summary of the HVI:
Home values rose again in August, although at the slowest pace in 2017. The HVI, the only measure of home value changes based solely on appraisals, reported that home values increased 0.19 percent in August. Appraisals posted stronger growth when viewed at a year-over-year basis, increasing 2.64 percent.
At a regional level, there was a slight downturn in home values in the South and East— dipping 0.52 percent and 0.58 percent, respectively. The Midwest and West regions each had rising appraisal values, increasing 0.16 percent and 1.34 percent.
“As the sun sets on the summer, some of the intense competition for housing also winds down,” Banfield says. “It’s important to focus on the annual numbers with the HVI. While there can be some monthly variations in the data, especially as seasons start to change, the annual numbers show healthy growth across the country.”
For more information, please visit QuickenLoans.com/Indexes.
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