Homeowners, Appraisers Remain Alingned on Home Values

Quicken Loans, Detroit, said homeowners and appraisers remained somewhat aligned in home values, even as home value appreciation continued to slow.

The company’s monthly National Home Price Perception Index 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.

Quicken said home values rose by just 0.53% nationally in November, but posted a 5.01% year-over-year increase, according to the Quicken Loans Home Value Index.

Bill Banfield, Quicken Loans Executive Vice President of Capital Markets, noted the year has not produced much monthly movement in the gap between home appraisals and homeowners’ expectations. The difference has remained below half a percent since March, with little month-to-month variation.

At the metro level, Chicago was 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,” Banfield said. “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.”