Quicken: Average Appraisal Values Make Largest Monthly Jump in 4 Years

Quicken Loans, Detroit, said average home appraisal values rose by nearly 2 percent from March to April, the largest monthly increase since 2015.

The company’s monthly Home Value Index said home values rose by 1.95 percent nationally in April and posted a 5.43% year-over-year increase.

Additionally, the Quicken monthly National Price Perception Index reported the difference between appraised values and homeowners’ perception of their home’s value rose to 0.87% lower in April. All but one of the metro areas measured had appraisals an average of 2% higher or lower than what homeowners estimated. Cleveland replaced Chicago at the bottom of the list, with appraised values an average of 1.95% lower than expected. Homeowners in Boston, on the other hand, had an average of 2.08% more equity than they realized in April.

“The continued widening of the gap between homeowners’ and appraisers’ viewpoints is evidence of just how hard it can be to keep your finger on the pulse of local housing, especially at the onset of home selling season,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets.

Home values grew consistently in each of the regions measured. The Northeast was the lowest with a 1.16 percent increase. The highest monthly growth was in the Midwest, with appraisal values rising 2.11% since March. The Midwest also led all annual growth with a 5.33% jump since the previous April. The West trailed the rest of the nation while still posting an impressive 3.87% year-over-year rise in home appreciation.

“Demand for housing is high this spring,” Banfield said. “The strong economy is leading more to look for a home, but the persistent low inventory keeps home values rising across the country. These new, higher levels are helping homeowners who are selling or accessing their equity–but the higher prices can make buyers reevaluate their budgets before heading out to open houses.”